Table 52 -If the Price Elasticity of Demand Is ?0

question 71

Multiple Choice

Table 5.2
$\begin{array}{c}\begin{array}{lll}\\ \text {Old}\\ \text {New}\end{array}\begin{array}{lll}\text {Quantity}\\\hline 20\\10\end{array}\begin{array}{lll}\text{ Price}\\\hline \$ 40 \\ \$ 60 \end{array}\end{array}$


-If the price elasticity of demand is ?0.5,then a _____

• A)1 percent decrease in quantity demanded leads to a 0.5 percent decrease in price.
• B)1 percent decrease in price leads to a 0.5 percent increase in quantity demanded.
• C)50 percent decrease in price leads to a 1 percent increase in quantity demanded.
• D)50 percent decrease in price leads to a 100 percent increase in quantity demanded.
• E)50 percent decrease in quantity demanded leads to a 1 percent decrease in price.

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Definitions:

Standardized

Consistent and uniform procedures applied in testing or assessment to ensure fairness and comparability of data or results.

Generations

Refers to all of the people born and living at about the same time, regarded collectively, often used to categorize specific cohorts in sociology, like Baby Boomers or Millennials.

Flynn Effect

The observed rise over time in standardized intelligence tests scores, attributed to various factors including improved nutrition and education.

Ethnic Groups

Categories of people who identify with each other based on common ancestral, social, cultural, or national experiences.