For a Particular Good, a 3 Percent Increase in Price

question 23

Multiple Choice

For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

• A) The relevant time horizon is short.
• B) The good is a necessity.
• C) The market for the good is broadly defined.
• D) There are many close substitutes for this good.

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Definitions:

Pupils

The opening in the center of the iris of the eye, which regulates the amount of light that enters the eye to reach the retina.

Action Potential

A rapid, temporary change in electrical potential across a cell membrane, leading to the transmission of a nerve impulse along a neuron.

Electric Gradient

A difference in the electrical charge across a membrane, leading to a force that drives the movement of ions.

Neuron Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a neuron, controlling the passage of ions and molecules in and out of the neuron.