If Price Elasticity of Demand Is -0.5

question 123

Multiple Choice

If price elasticity of demand is -0.5,

• A)a 1% decrease in quantity demanded leads to a 0.5% decrease in price
• B)a 1% decrease in price leads to a 0.5% increase in quantity demanded
• C)a 50% decrease in price leads to a 1% increase in quantity demanded
• D)a 50% decrease in price leads to a 100% increase in quantity demanded
• E)demand is elastic

---

Definitions:

Autonomous

Having the ability or right to govern oneself or make one's own decisions, often reflecting independence and self-determination.

Protective Parent Figure

An individual who provides emotional and physical security to their child, guarding them against harm and fostering their development.

Cognitive Systems

Complex systems involved in the processing of information, encompassing functions such as perception, memory, judgment, and decision-making.

Internal Motives

Psychological drivers or desires that originate within an individual, guiding their behavior from the inside.