For a Good That Has a Price Elasticity of Demand

question 27

Multiple Choice

For a good that has a price elasticity of demand of -1.5 and a marginal cost of $50 per unit, the profit-maximizing price should be approximately _____.

• A) $200
• B) $168
• C) $150
• D) $50
• E) $134

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Definitions:

Positive Frame of Mind

A mental attitude focusing on the good aspects of a situation, often linked to more effective problem-solving and decision-making.

Bad News Messages

Communications that convey unfavorable or disappointing information to the receiver, requiring careful crafting to minimize negative reactions.

Prompt Delivery

Quick and efficient provision or supply of goods, services, or information.

Negative News

Information that is unfavorable or disappointing, often requiring careful delivery to minimize impact.