If a 10 Percent Price Increase Generates a 10 Percent

question 255

Multiple Choice

If a 10 percent price increase generates a 10 percent decrease in quantity demanded,then demand is

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

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Definitions:

Trial and Error

A problem-solving method involving repeated attempts to reach a solution, learning from failures until success is achieved.

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Trial and Error

A method of problem-solving that involves attempting different solutions and eliminating those that do not work.

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