What Is the Effect of a 10 Percent Price Increase

question 164

Multiple Choice

What is the effect of a 10 percent price increase on quantity demanded if elasticity is equal to 1?

• A)Quantity demanded does not change.
• B)Quantity demanded drops by less than 10 percent.
• C)Quantity demanded drops by 10 percent.
• D)Quantity demanded drops by more than 10 percent.
• E)Quantity demanded drops to 0.

---

Definitions:

Functional Structures

An organizational design that groups employees according to their specialized roles or functions, facilitating efficiency and expertise development.

Cost Containment

Strategies or measures implemented to control or reduce expenses within an organization or project.

Environmental Changes

Environmental changes are alterations in the natural world, including climate change, pollution, deforestation, and loss of biodiversity, impacting ecosystems and human societies.

Upward

In an organizational context, this term typically refers to communication or feedback that flows from lower levels of the hierarchy to upper levels of management.