If Quantity Demanded for Sneakers Falls by 10 Percent When

question 8

Multiple Choice

If quantity demanded for sneakers falls by 10 percent when price increases 25 percent,we know that the absolute value of the own price elasticity of sneakers is:

• A) 2.5.
• B) 0.4.
• C) 2.0.
• D) 0.27.

---

Definitions:

Monetary Policy

The process by which a country's central bank controls the supply of money, often targeting inflation or interest rates to ensure economic stability.

Federal Reserve Bank

The central banking system of the United States, responsible for monetary policy, regulation of banks, and providing financial services.

Gross Domestic Product

The aggregate value of all products and services finished within a nation's boundaries over a distinct timeframe, measured in monetary or market terms.

Gross National Product

The total value of all goods and services produced by a country's residents in a specific time period, including international activities.