Suppose the Own Price Elasticity of Demand for Good X

question 85

Multiple Choice

Suppose the own price elasticity of demand for good X is -5, and the quantity of good X decreases by 5 percent. What would you expect to happen to the total expenditures on good X?

• A) Increase
• B) Decrease
• C) Unchanged
• D) Neither increase, decrease, nor remain unchanged

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Definitions:

Variable

Any condition or factor that can be manipulated, controlled, or measured.

Research Method

Various techniques and strategies used by scientists to gather and analyze data in order to investigate specific questions or hypotheses.

Independent Variables

In research, the variable that is manipulated or changed by the researcher to observe how it affects the dependent variable.

Dependent Variables

In experimental research, the variable that is tested and measured, expected to change when the independent variable is altered.