If the Price Elasticity of Demand for a Good Is

question 45

Multiple Choice

If the price elasticity of demand for a good is -0.8 and quantity demanded decreases by 40%,price must have

• A)increased by 5%.
• B)increased by 32%.
• C)decreased by 20%.
• D)decreased by 32%.
• E)none of the above

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of a business but is not control over those policies.

Financial Decisions

Decisions made by individuals or organizations related to the allocation of resources, investment, budgeting, and managing finances.

Operating Policy

A set of guidelines or principles that dictate the operational decisions and day-to-day functioning of an organization.

Directors

Individuals elected by shareholders to oversee the management of a company, making strategic and operational decisions to ensure the company's success.