If the Price Elasticity of Demand for a Good Is

question 229

Multiple Choice

If the price elasticity of demand for a good is 0.4,then which of the following events is consistent with a 2 percent decrease in the quantity of the good demanded?

• A)a 0.8 percent increase in the price of the good
• B)a 2.4 percent increase in the price of the good
• C)a 5 percent increase in the price of the good
• D)a 8 percent increase in the price of the good

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Definitions:

Antidiarrheal Drug

Medications designed to slow the movement of the intestinal tract to reduce diarrhea.

Melena

The passage of dark, tarry stools containing digested blood, indicative of upper gastrointestinal bleeding.

Gastrointestinal Tract

The series of organs responsible for digestion, starting from the mouth and extending through to the anus, including the stomach and intestines.

High-Fiber Food

Foods rich in dietary fiber, which promote digestive health and can help prevent constipation.