Suppose the Value of the Price Elasticity of Demand Is

question 171

Multiple Choice

Suppose the value of the price elasticity of demand is -3.What does this mean?

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

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Definitions:

Culture

The beliefs, values, rules, and customs that exist within a group of people who share a common language and environment and that are transmitted through learning from one generation to the next.

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or virtual territory, typically subject to the same political authority and dominant cultural expectations.

Civilization

A complex society characterized by the presence of cities, social stratification, forms of government, and symbolic systems of communication such as writing.

Lineup Identification

A process in law enforcement where witnesses or victims are asked to identify a perpetrator from a group of individuals.