When the Price of Oranges Increases from $4 to $6

question 516

Multiple Choice

When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to

• A) 3.
• B) 3/7 or 0.4286.
• C) 1/3 or 0.3333.
• D) 1/4 or 0.25.

---

Definitions:

Shareholders

Individuals or entities that own shares in a corporation, entitling them to a portion of the company's profits and assets.

Dividend Policy

A company's strategy or policy for distributing a portion of its earnings to shareholders in the form of dividends.

Cash Flow

The full volume of financial resources being exchanged in and out of an enterprise, directly affecting its operational liquidity.