If the Absolute Price Elasticity of Demand Is 0

question 254

Multiple Choice

If the absolute price elasticity of demand is 0.2, a 5 percent decrease in the price will cause

• A) the quantity demanded to increase by 1 percent.
• B) the quantity demanded to increase by 10 percent.
• C) the quantity demanded to increase by 0.25 percent.
• D) the quantity demanded to increase by 2.5 percent.

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Definitions:

Scales

Instruments or systems for measuring or assessing a particular characteristic or quantity, such as weight, severity, or performance.

Reinforcement

In behavioral psychology, a process by which a stimulus increases the probability of a response through its presentation (positive reinforcement) or removal (negative reinforcement).

Prelinguistic Vocalization

Early sounds made by infants before they acquire language, including cooing and babbling, important for speech development.

Brain Structures

The various parts of the brain, each responsible for different functions, including thought, emotion, sensation, and movement.