Suppose the Quantity Demanded of Ski Boats Falls from 4

question 23

Multiple Choice

Suppose the quantity demanded of ski boats falls from 4.0 million to 3.0 million as a result of an average price increase from $20,000 to $25,000 per boat.The absolute value of the price elasticity of demand is closest to

• A)0.20.
• B)1.29.
• C)0.78.
• D)0.29.

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Federal Trade Commission

A U.S. government agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.

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The legal entitlement allowing a party to challenge a court's decision in a higher court.

Deceptive Claim

A false or misleading statement made about a product or service, usually to persuade consumers to purchase.

Federal Trade Commission

A federal agency established to prevent anticompetitive, deceptive, and unfair business practices through regulation, education, and enforcement.