If the Price of a Good Decreases by 10% and the Quantity

question 15

Multiple Choice

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

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

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Definitions:

Corporate Stock

Ownership shares in a corporation, representing a claim on part of the corporation's assets and earnings.

Single Corporation

An individual business entity recognized by law as separate from its owners, possessing rights and responsibilities.

Same Industry

Pertains to businesses or entities that operate within the same sector or category of the economy, producing similar goods or services.

Risky

Involving or exposing someone to a possibility of loss or injury.