When Price Goes Down, the Quantity Demanded Goes Up

question 178

Multiple Choice

When price goes down, the quantity demanded goes up.Price elasticity measures:

• A) how much the price goes down.
• B) how much the quantity goes up.
• C) how responsive the price change is in relation to the quantity change.
• D) how responsive the quantity change is in relation to the price change.

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Definitions:

Timing

The selection of the most opportune moment to initiate or execute an action, which can greatly affect the success or failure of an endeavor.

Mineral Rights

The legal rights to explore for and produce the minerals underneath a piece of land.

Easement

A right granted to a person or entity to use the land of another for a specific purpose, such as access to another property.

Reservation

An arrangement to secure a place or service in advance, such as a hotel room or a seat on a flight.