Studio Clothing Store Knows That the Price Elasticity of Demand

question 46

Multiple Choice

Studio clothing store knows that the price elasticity of demand for its jeans is 2.5.If the price of jeans were to increase by 10%:

• A)quantity demanded of jeans would rise by 25%.
• B)quantity demanded of jeans would fall by 25%.
• C)quantity demanded of jeans would rise by 4%.
• D)quantity demanded of jeans would fall by 4%.

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Definitions:

Outsourcing

The practice of hiring outside firms to handle work normally performed within a company, often to cut costs.

Consulting

The practice of giving expert advice within a particular field, often involving identifying problems and recommending solutions.

Outsiders

Individuals who are not part of a specific group, organization, or community, often lacking the specific knowledge or experiences of that group.

Organizational Bias

Unfair favoritism or prejudice within an organization, often leading to unequal treatment of employees.