Suppose That the Quantity Demanded of a Good Rises from 40

question 5

Multiple Choice

Suppose that the quantity demanded of a good rises from 40 units to 60 units per month when the price falls from $1.05 to 95 cents per unit.The price elasticity of demand for this product is

• A)0.5
• B)1.5
• C)1.0
• D)2.0
• E)4.0

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Definitions:

Accounting Business

An enterprise that provides financial services such as bookkeeping, tax preparation, and financial auditing to individuals or other businesses.

Business Form

Denotes the legal structure or framework chosen for the operation of a business entity, such as a corporation, partnership, or sole proprietorship.

Course of Business

The routine practices and activities that a business engages in as part of its normal operations.

Ordinary Course

Activities that are considered part of the usual operations of a business or organization.