The Table Given Below Reports the Price and Quantity Demanded

question 36

Multiple Choice

The table given below reports the price and quantity demanded of a commodity. Table 5.1
According to Table 5.1, when the price increases from $5 to $6, the price elasticity of demand is _____.

• A)0.25
• B)1.0
• C)1.3
• D)1.8
• E)1.67

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward-sloping.

Product Prices

The prices of goods and services offered in the market, influenced by various factors including production costs, competition, and demand.

Demand Increase

A rise in the quantity of a product or service that consumers are willing and able to buy, typically due to factors like lower prices, increased income, or changes in preferences.

Labor Union

An organization formed by workers to protect their rights and interests, including negotiating wages and working conditions.