If the Price Elasticity of Demand for a Good Is

question 145

Multiple Choice

If the price elasticity of demand for a good is 4,then a 12 percent decrease in price results in a

• A)0.33 percent increase in the quantity demanded.
• B)3 percent increase in the quantity demanded.
• C)30 percent increase in the quantity demanded.
• D)48 percent increase in the quantity demanded.

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Definitions:

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory, often to further the health, safety, and morals of its inhabitants.

Regulate

To control or maintain the rate or speed of a machine or process so that it operates properly; to govern or direct according to rule.

Concurrent Powers

Powers in federal systems of government shared by both the state and the federal government, such as the power to tax, build roads, and create lower courts.

Share Authority

The distribution of power and responsibilities among various governing bodies or officials.