Suppose the Quantity of Root Beer Demanded Decreases from 105,000

question 112

Multiple Choice

Suppose the quantity of root beer demanded decreases from 105,000 litres per week to 95,000 litres per week when the price rises by 5 percent.The price elasticity of demand is

• A)2.0.
• B)0.5.
• C)10.
• D)0.02.
• E)50.

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Definitions:

Labour Costs

The total expenses incurred by employers for the payment of wages, benefits, and other forms of compensation to employees.

Labour Costs

Financial expenditures related to employing workers, including wages, benefits, taxes, and training expenses.

In-house Consultant

An employee within an organization who provides expert advice and services in a particular area, similar to an external consultant but employed internally.

Administrative Costs

Expenses related to the general administration of a business, such as salaries of non-production employees, office supplies, and utilities.