If the Price Elasticity of Demand Is 0

question 223

Multiple Choice

If the price elasticity of demand is 0.5, then when the price of Good X rises by 20 percent:

• A) the quantity demanded of it rises by 40 percent.
• B) the quantity demanded of it rises by 10 percent.
• C) the quantity demanded of it falls by 10 percent.
• D) the quantity demanded of it falls by 40 percent.

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Definitions:

Grasslands

Ecosystems characterized by large open areas of grasses, important for grazing animals and maintaining biodiversity.

Overgrazing

Overgrazing occurs when plants are exposed to intensive grazing for extended periods, leading to land degradation, reduced ground cover, and a decrease in soil fertility.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential development, increased reliance on vehicles, and the loss of open space and agricultural land.

Toxic Wastes

Hazardous materials that can cause harm to human health and the environment, often produced by industrial activities.