If a 5 Percent Reduction in the Price of a Commodity

question 230

Multiple Choice

If a 5 percent reduction in the price of a commodity results in a 3 percent increase in the quantity demanded, demand is said to be:

• A) unstable.
• B) price inelastic.
• C) price elastic.
• D) unit price elastic.

---

Definitions:

Ewald Hering

A 19th-century physiologist known for his work on color vision and spatial perception.

Young-Helmholtz Theory

A theory of color vision proposing that the eye contains three types of color receptors, each sensitive to red, green, or blue wavelengths of light.

Wavelengths

The distance between two consecutive points of the same phase in a wave, often determining its characteristics like color in light waves.

Afterimages

Visual phenomena that occur after staring at a visual stimulus for a prolonged period, resulting in seeing an image even after looking away.