Suppose the Value of the Price Elasticity of Demand Is

question 99

Multiple Choice

Suppose the value of the price elasticity of demand is −3.This means that________.

• A) a 1 per cent increase in the price of the good causes quantity demanded to increase by 3 per cent.
• B) a 1 per cent increase in the price of the good causes quantity demanded to decrease by 3 per cent.
• C) a 3 per cent increase in the price of the good causes quantity demanded to decrease by 1 per cent.
• D) a $1 increase in price causes quantity demanded to fall by 3 units.

---

Definitions:

Calling

A deep sense of purpose or strong inner impulse toward a particular course of action, especially in a career or vocational path.

Mutual Attraction

A reciprocal sense of physical or emotional appeal experienced between two or more individuals.

Social Exchange Theory

A theory suggesting that human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.

Intrinsic

Being naturally part of something; inherent or essential.