If the Value of the Price Elasticity of Demand Is

question 187

Multiple Choice

If the value of the price elasticity of demand is -0.2, this means that a

• A)20 percent decrease in price causes a 1 percent increase in quantity demanded
• B)0.2 percent decrease in price causes a 1 percent increase in quantity demanded
• C)5 percent decrease in price causes a 1 percent increase in quantity demanded
• D)0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded
• E)100 percent decrease in price causes a 200 percent increase in quantity demanded

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Definitions:

Dual Lines

A structure or system that involves two parallel paths or channels, which can facilitate processes or communication.

Force Field Analysis

A decision-making tool used to analyze the forces for and against a change, helping to identify the factors that must be addressed to achieve successful change.

Restraining Forces

Factors that counteract changes and impede progress in an organization or system.

Mechanistic Model

A formalized structure based on centralization and departmentalization.