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

question 28

Multiple Choice

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

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

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Definitions:

Alertness

A state of active attention by the mind to the environment or stimuli, often marked by a heightened sense of awareness.

Drive-Reduction Theory

A theory in psychology that posits the reduction of physiological needs is a primary motivator for behavior.

Tension Reduced

A state or process whereby physiological or psychological tension is decreased.

Stability

The state or quality of being stable; firmness in position.