If the Absolute Value of the Price Elasticity of Demand

question 153

Multiple Choice

If the absolute value of the price elasticity of demand for a product is 1.5, and the price of a product increased 30 percent, then the quantity demanded will decline by

• A) 45 percent.
• B) 20 percent.
• C) 5 percent.
• D) 10 percent.

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Definitions:

Agriculturalists

People who practice agriculture, cultivating soil, producing crops, and raising livestock for subsistence or economic gain.

Mongongo Fruit Trees

Trees native to sub-Saharan Africa, specifically known for producing mongongo nuts, which are a critical source of nutrition and have various uses, including in skincare and cooking.

Water Holes

Natural or man-made depressions or excavations where water collects, often serving as a vital source of hydration for wildlife in arid environments.

Economy Primarily

Refers to the main or dominant sector or aspect of an economy that drives economic activity, such as agriculture, manufacturing, or services.