If Market Demand for a Public Good Is Given by P

question 35

Multiple Choice

If market demand for a public good is given by P = 10 - 3Q,then the elasticity of demand when Q = 2 is

• A) 0.67.
• B) 6.
• C) 1.
• D) 0.06.
• E) 3.

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Definitions:

Purchasing Inventory

Purchasing inventory involves the acquisition of raw materials, work-in-progress, or finished goods to ensure that production can meet demand without unnecessary delay or stockouts.

Retailer

A business entity that sells goods directly to consumers, typically purchasing products from wholesalers or manufacturers.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Marketable Securities

Financial instruments or assets that can be easily converted into cash, typically including stocks and bonds.