Suppose a Fast-Food Chain Determines That the Price Elasticity of Demand

question 45

Multiple Choice

Suppose a fast-food chain determines that the price elasticity of demand for its hamburgers is 0.75,and the price of the hamburger is currently $4.00.What will be the effect on quantity demanded and total expenditure on this chain's hamburgers if the price is increased to $6.00?

• A)Quantity demanded will fall by 30%,and total expenditure will increase.
• B)Quantity demanded will fall by 40%,and total expenditure will increase.
• C)Quantity demanded will fall by 75%,and total expenditure will increase.
• D)Quantity demanded will fall by 0.3%,and total expenditure will decrease.
• E)Quantity demanded will fall by 0.4%,and total expenditure will decrease.

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Definitions:

Multiple Deadlines

Having several due dates for tasks or projects, often occurring simultaneously or in close succession.

Communication

The act of transferring information from one place, person, or group to another, whether verbally, written, visually, or non-verbally.

Evaluation

The systematic assessment of the value, effectiveness, or significance of something through analysis and comparison of data.

Closing Remarks

Final comments or statements made at the end of a presentation, meeting, or written piece that summarize the main points or aim to leave a lasting impression on the audience.