Celine Runs a Sporting Goods Store and Knows That the Price

question 104

Multiple Choice

Celine runs a sporting goods store and knows that the price elasticity of demand for her sports clothing line is -1.5.She is planning to lower prices by 10 percent.The percentage change in quantity demanded will be

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

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Definitions:

Real Wages

The purchasing power of wages or salaries, adjusted for inflation, indicating the quantity of goods and services that can be purchased.

High School Diploma

A certification awarded upon the successful completion of a secondary education program, representing a basic level of learning.

College Graduate

An individual who has completed a course of study at a college or university and received a degree certifying their level of education.

Money Wages

Wages paid to employees in terms of money, as opposed to real wages, which are wages adjusted for inflation.