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The Price of Furnace Filters Increased by 5 Percent and the Quantity

question 90

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The price of furnace filters increased by 5 percent and the quantity demanded did not change.The price elasticity of demand for furnace filters is


Definitions:

Diminishing Marginal Utility

Diminishing marginal utility is an economic principle stating that as a person consumes more of a good or service, the satisfaction (utility) gained from each additional unit decreases.

Satisfaction

The feeling of pleasure or contentment arising from meeting one's needs, desires, or expectations.

Utility

A measure of satisfaction or benefit that a consumer receives from consuming goods and services.

Consumer Derives

The satisfaction or utility that a consumer obtains from the consumption of goods and services.

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