If a $1 Increase in Price Changes Quantity Demanded by 4

question 118

Multiple Choice

If a $1 increase in price changes quantity demanded by 4 units,the price elasticity of demand

• A)must equal .25 percent.
• B)must equal 4 percent.
• C)must equal 1/4.
• D)cannot be calculated with this information.
• E)must equal 4.

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Definitions:

Corporate Veil

A legal concept that separates the identity of a corporation from its shareholders, protecting them from being personally liable for the company’s debts and obligations.

Closely Held Corporations

Companies whose shares are owned by a small group of individuals or families, often with restricted stock sales.

Parent-subsidiary Relationships

The connection between a parent company that controls another company (subsidiary) through ownership of a majority of voting stock or influence.

RMBCA

Stands for the Revised Model Business Corporation Act, which is a model set of laws proposed to standardize the regulation of corporations across the United States.