If Elasticity for a Product Is 2 and Demand Decreases

question 65

Multiple Choice

If elasticity for a product is 2 and demand decreases by 10 percent,what was the percent price change for the product?

• A)an increase of 2 percent
• B)a decrease of 2 percent
• C)an increase of 10 percent
• D)a decrease of 5 percent
• E)an increase of 5 percent

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used unconsciously to make judgments and solve problems quickly.

Additive Strategies

Decision-making methods where alternatives are analyzed and evaluated by systematically adding their attributes to make a choice.

Exemplars

Instances or examples that are typical of a class or group and are used for comparison or emulation.

Problem Solving Strategy

A method or plan of action used to find a solution to a problem or challenge.