If the Price Elasticity of Demand for a Good Is

question 117

Multiple Choice

If the price elasticity of demand for a good is 1,then a 3 percent decrease in price results in a

• A)0.1 percent increase in the quantity demanded.
• B)1 percent increase in the quantity demanded.
• C)3 percent increase in the quantity demanded.
• D)4 percent increase in the quantity demanded.

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Definitions:

Random Variable

A variable representing the numeric outcomes from a random phenomenon.

Joint Probabilities

The probability of two or more events happening at the same time, assuming they are related.

Complement

In probability theory, the complement of an event is the set of all outcomes that are not in the event.