If the Price of a Good Increases by 5% and the Quantity

question 134

Multiple Choice

If the price of a good increases by 5% and the quantity demanded decreases by 10%, then at that price, the good is

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

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Definitions:

Shared Commitment

A mutual agreement or pledge among members of a group to pursue a common goal or adhere to a particular set of standards or principles.

Membership Reference Group

The group to which a consumer actually belongs.

Cognitive

Relating to mental activities such as thinking, understanding, learning, and remembering.

Behavioral

Pertaining to or concerned with the actions or activities of individuals, often studied to understand their motivations, decision-making processes, and patterns.