Suppose That the Quantity of a Good Demanded Rises from 90

question 96

Multiple Choice

Suppose that the quantity of a good demanded rises from 90 units to 110 units when the price falls from $1.20 to 80 cents per unit. The price elasticity of demand for this product is

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

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Definitions:

Sales Budget

A sales budget is an estimated amount of revenue that a company expects to earn from sales over a specific period.

Master Budget

A master budget is a comprehensive financial planning document that consolidates all of the individual budgets of a company's departments into one single plan for a specific period.

Financial Budgets

Plans that project an organization's income, expenditures, and capital needs over a specific period, guiding its financial operations and goals.

Operating Budgets

Financial plans that outline the projected revenue, expenses, and profit for the operations of a business within a specific period.