If a 5 Per Cent Decrease in the Price of a Good

question 71

Multiple Choice

If a 5 per cent decrease in the price of a good produces a 5 per cent increase in the quantity demanded, the price elasticity of demand is:

• A) perfectly elastic.
• B) perfectly inelastic.
• C) elastic.
• D) unitary elastic.

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Definitions:

Clinical Depression

A serious mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, affecting a person’s daily life.

Stressful Life Changes

Significant alterations in one's life situation, such as divorce or job loss, that can lead to increased stress and may necessitate psychological support.

Psychoanalysis

A therapeutic approach developed by Sigmund Freud that emphasizes unconscious processes and past conflicts as key influences on behavior.

Early Childhood Experience

These are events or conditions in one's early years, typically aged 0-6, that significantly influence psychological development and can impact behavioral patterns and mental health in adulthood.