At a Price of $2,the Quantity Demanded for Pens Is

question 107

Multiple Choice

At a price of $2,the quantity demanded for pens is 12.When the price increases to $3,the quantity demanded for pens is 10.The price elasticity of demand for pens is

• A) perfectly inelastic.
• B) inelastic.
• C) horizontal.
• D) elastic.
• E) perfectly elastic.

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Definitions:

Price

Price is the amount of money expected, required, or given in payment for something.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund government spending and public expenditures.

Consumer Surplus

The offset between the potential total payment by consumers for a good or service and the actual amount remitted.

Tax Revenue

The fiscal earnings that are accumulated by governments through taxation.