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).

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Definitions:

Economic Disincentives

Financial policies or measures intended to discourage harmful behaviors through increased costs or reduced financial benefits.

Family Planning

The method of managing how many children a family has and the spacing between their births, specifically through the use of birth control or the choice of sterilization.

Poverty

A condition where individuals or communities lack the financial resources to meet basic needs such as food, shelter, and healthcare.

Population Control

Strategies or policies aimed at regulating the growth rate of a population to ensure sustainability and prevent overpopulation.