Suppose That,as Price Falls from $10 to $9,quantity Demanded Rises

question 53

Multiple Choice

Suppose that,as price falls from $10 to $9,quantity demanded rises from 1 to 2 units and,as price falls from $2 to $1,quantity demanded increases from 9 to 10 units.The price elasticity of demand measured between the $10 and $9 points compared to that between the $2 and $1 points will show the

• A) two elasticities are the same.
• B) elasticity between $10 and $9 to be smaller.
• C) elasticity between $2 and $1 to be more elastic.
• D) elasticity between $10 and $9 to be more elastic.
• E) elasticity between $2 and $1 to be larger.

---

Definitions:

Proceeds

The total amount of money received from a transaction, such as the sale of an asset, before any deductions.

Replenish Petty Cash

The process of adding funds to a petty cash fund, typically done when the balance drops to a predefined level, to ensure availability of cash for small, immediate expenses.

Minor Expenditures

Small or insignificant costs that are usually of a non-recurring nature and may not be capitalized.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity, effectively providing interest to the holder.