Suppose the Price Elasticity of Demand for Your Economics Textbook

question 4

Multiple Choice

Suppose the price elasticity of demand for your economics textbook is −1.If the publisher raises the price by 5 percent,then _____

• A)revenues will rise by 5 percent.
• B)quantity demanded will rise by 5 percent.
• C)total revenue will not change.
• D)revenues will fall by 1 percent.
• E)revenues will fall by 5 percent.

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Definitions:

Conservation

In cognitive development, the understanding that certain properties of objects or substances remain the same even when their appearance changes.

Object Permanence

The realization that objects (including people) still exist when they can no longer be seen, touched, or heard.

Egocentrism

A cognitive characteristic where an individual has difficulty in understanding that other people have their own perspectives and feelings.

Static Thinking

Static thinking is a cognitive approach where an individual perceives situations or concepts as unchanging and fails to recognize the potential for growth or alteration.