Clear Window Manufacturer Wants to Increase the Quantity of Windows

question 120

Multiple Choice

Clear Window Manufacturer wants to increase the quantity of windows it sells by 10%.If the price elasticity of demand is 5,the manufacturer must

• A) increase price by 1.5%.
• B) decrease price by 2.0%.
• C) decrease price by 1.5%.
• D) increase price by 2.0%.

---

Definitions:

Credit Sales

Sales transactions where payment is deferred, allowing customers to purchase goods or services on credit.

Receivables Turnover

A financial metric indicating how efficiently a company uses its assets by calculating the number of times average receivables are collected during a given period.

Sales Trend

The examination of sales data over a period of time to identify patterns or trends, which can help in making business forecasts.