If the Price of Chocolate-Covered Peanuts Decreases from $1

question 204

Multiple Choice

If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 0 bags to 400 bags, this indicates that, if other things are unchanged, the price elasticity of demand is:

• A) -0.5.
• B) -1.
• C) -2.
• D) greater than 2 (absolute value).

---

Definitions:

Perception

relates to the way in which something is regarded, understood, or interpreted by individuals, which can significantly influence their thoughts and actions.

Feedback

Information provided as a response to an action or process, which can be used for adjustment, improvement, or reinforcement of future actions.

Negotiators

Individuals who engage in discussions with the aim of reaching an agreement or resolving a dispute between parties.

Explanations

Statements or reasons given to justify actions or make something clear.