What Has Happened to Price If the Price Elasticity of Demand

question 6

Multiple Choice

What has happened to price if the price elasticity of demand is 2 and quantity demanded increases by 10%?

• A)It increases by 10%.
• B)It decreases by 5%.
• C)It decreases by 20%.
• D)It increases by 20%.

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Definitions:

Adolescence

A developmental stage that marks the transition from childhood to adulthood, characterized by rapid physical growth, hormonal changes, and the exploration of identity.

Common

refers to something occurring frequently or widely accepted and shared among a large group of people or society in general.

Histrionic

Relating to a personality disorder characterized by excessive emotions, attention-seeking, and dramatic behavior.

Flamboyant

Characterized by or tending to attract attention because of their exuberance, confidence, and stylishness.