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:

Product Line

A range of related products offered by a business designed to appeal to a particular market segment.

Organizational Structure

The way in which a company is organized internally, defining the roles, responsibilities, and hierarchy within the organization to facilitate its operations and objectives.

Snowboards

Boards designed for descending snow-covered slopes by standing sideways on them, akin to surfing or skateboarding.

Global Business Units

Specialized business segments within a multinational company, designed to address global markets and manage international operations.