If the Absolute Price Elasticity of Demand Is 2

question 72

Multiple Choice

If the absolute price elasticity of demand is 2.0, a 5 percent decrease in price will increase quantity demanded by

• A) 10 percent.
• B) 20 percent.
• C) 25 percent.
• D) 5 percent.

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Definitions:

Political Science

The academic discipline that studies governments, public policies, political processes, political behavior, and ideas about governance.

Liberal

In politics, a viewpoint or ideology favoring policies that emphasize individual freedoms, social justice, and the need for government intervention to achieve these goals.

Moderate

Neither extreme nor excessive, often referring to views, conditions, or amounts that are reasonable or average.

Conservative

In politics, it refers to someone favoring traditional views and values, tending to oppose change. In other contexts, it can also mean cautious or restrained.