If the Price of the IPod Falls by 3 Percent

question 68

Multiple Choice

If the price of the iPod falls by 3 percent and the price elasticity of demand for iPods is 2.0, then quantity demanded will fall by what percentage?

• A) 5 percent.
• B) 6 percent.
• C) 0.6 percent.
• D) 60 percent.

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Definitions:

Mere Exposure Effect

An effect that occurs when people hold a positive attitude toward a stimulus simply because they have been exposed to it repeatedly.

Classical Music

A genre of music that spans a period from roughly the 11th century to the present day, characterized by its complex structure and written in musical notation.

Attitude

Evaluation of a stimulus; can range from positive to negative.

Liked

The feeling of being appreciated or preferred by others, often measured by positive reactions in social and digital contexts.