If a Price Increase from $8 to $10 Causes Quantity

question 158

Multiple Choice

If a price increase from $8 to $10 causes quantity demanded to fall from 500 to 400,what is the absolute value of the own price elasticity at a price of $10?

• A) 0.80
• B) 1.25
• C) 1.00
• D) 0.75

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Definitions:

Underemployed

Condition where individuals are working fewer hours than desired or in jobs that do not fully utilize their skills and qualifications.

Economic Recovery

The process by which a nation's economy rebounds from a period of recession or economic downturn, characterized by a rise in employment, consumer spending, and growth in GDP.

Financial Burdens

The strain or stress placed on an individual's or entity's finances due to debts, obligations, or other financial commitments.

Downsizing

The reduction of an organization's workforce to improve its efficiency or reduce costs.