If Quantity Demanded for Sneakers Falls by 6 Percent When

question 34

Multiple Choice

If quantity demanded for sneakers falls by 6 percent when price increases 20 percent,we know that the absolute value of the own price elasticity of sneakers is:

• A) 0.3.
• B) 0.7.
• C) 2.3.
• D) 3.3.

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Definitions:

Intensive Margin

The degree to which factors of production, such as labor, are utilized more intensely to increase output in the short term.

Consumption Changes

Variations in the amount and types of goods and services used by households over time.

Barley Crop

A cereal grain that is used worldwide as fodder for animals, as a source of fermentable material for beer and certain distilled beverages, and as a component of various health foods.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.