If the Price of a Good Rises by 10% and the Percentage

question 45

Multiple Choice

If the price of a good rises by 10% and the percentage decrease in the total amount consumers spend on the good is 5% then the good is

• A)elastic.
• B)inelastic.
• C)unit elastic.
• D)perfectly inelastic.

---

Definitions:

Studying

The act of devoting time and attention to gaining knowledge on a subject, especially through reading and academic research.

Regression

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, or a defense mechanism leading to reversion to an earlier stage of development.

Psychosexual Stage

A concept in Freudian psychology that describes phases during childhood where the libido is focused on different body parts.

Defense Mechanism

Psychological strategies developed by the unconscious mind to protect an individual from anxiety or unacceptable thoughts and feelings.