The Price Elasticity of Demand for Widgets Is 0

question 38

Multiple Choice

The price elasticity of demand for widgets is 0.80.Assuming no change in the demand curve for widgets,a 16 percent increase in sales implies a:

• A) 1 percent reduction in price.
• B) 12 percent reduction in price.
• C) 40 percent reduction in price.
• D) 20 percent reduction in price.

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Definitions:

Adult

A person who has reached maturity or the legal age of majority, typically characterized by physical growth completion and the assumption of responsibilities.

Earmarks

Earmarks are provisions within legislation that allocate funds to specific projects, often without passing through the typical competitive or merit-based allocation processes.

Randy "Duke" Cunningham

A former United States Congressman who was convicted of accepting bribes from defense contractors.

Bribes

The act of giving or receiving something of value in exchange for some kind of influence or action in return, that is often illegal or unethical.