Suppose the Own Price Elasticity of Demand for Good X

question 51

Multiple Choice

Suppose the own price elasticity of demand for good X is −0.5,and the price of good X increases by 10 percent.What would you expect to happen to the total expenditures on good X?

• A) Increase
• B) Decrease
• C) Remain unchanged
• D) Neither increase, decrease, nor remain unchanged

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Definitions:

Terror

Intense, sharp, overmastering fear that can be both a psychological and physiological response to extreme or life-threatening situations.

Posttraumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event.

U.S. Civil War

A significant conflict from 1861 to 1865 in the United States between the Northern states (Union) and the Southern secessionist states (Confederacy) primarily over issues of slavery and states' rights.

Melancholia

A condition described by early Greek and Roman philosophers and physicians as consisting of unshakable sadness. Today it is known as depression.