Chris Runs a Sporting Goods Store and Knows That the Price

question 152

Multiple Choice

Chris runs a sporting goods store and knows that the price elasticity of demand for his sports clothing line is -1.5.He is planning to lower prices by 10%.The percentage change in quantity demanded will be:

• A) 15%.
• B) 0.15%.
• C) 6.66%.
• D) 0.06%.
• E) 8.50%.

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Definitions:

Short Rate

A penalty premium amount charged when an insurance policy is terminated by the policyholder before the end of its term.

Coinsurance Clause

A provision in an insurance policy that defines the split of costs between the insurer and the insured after the deductible is met.

Coinsurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, serving to share risk between the insurer and insured.

Life Policy

A contract with an insurance company that pays a designated beneficiary a sum of money upon the death of the insured person.