If the Price Elasticity of Demand for a Good Is

question 45

Multiple Choice

If the price elasticity of demand for a good is 2,then a 10 percent decrease in the quantity demanded must be the result of

• A)a 0.2 percent increase in the price.
• B)a 2.5 percent increase in the price.
• C)a 5 percent increase in the price.
• D)a 20 percent increase in the price.

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Definitions:

Specific High Learning Goal

A clearly defined objective aimed at achieving a significant level of knowledge or skill in a particular area.

Goal Setting

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives.

Weyerhaeuser Company

An American multinational forest products company, primarily engaged in the production of timber, manufacturing of wood products, and real estate development.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on their expectations of the outcome and the value they place on that outcome.