If the Price Elasticity of Demand Is 0

question 70

Multiple Choice

If the price elasticity of demand is 0.6,then a 10 percent increase in the price of the good will lead to a ________ in the quantity demanded.

• A)6 percent increase
• B)6 percent decrease
• C)0.6 percent increase
• D)0.6 percent decrease

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.

Salvage Value

The predicted residual value of an asset upon reaching the end of its practical lifespan.

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life.

Useful Life

The estimated period over which it is expected that an asset will be profitable or useful to its owner.