If a $1 Increase in Price Changes Quantity Demanded by 4

question 37

Multiple Choice

If a $1 increase in price changes quantity demanded by 4 units, the price elasticity of demand

• A)must equal 0.25 percent.
• B)must equal 4 percent.
• C)must equal 1/4.
• D)cannot be calculated with this information.
• E)must equal 4.

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Definitions:

Personal Income Taxes

Taxes levied on the income of individuals, typically based on their earnings from employment, investments, and other sources.

Proprietor

The owner of a business establishment, a shop, or any other commercial enterprise.

Sole Proprietorship's Profits

The total income a sole proprietorship generates after expenses are deducted, belonging entirely to the business owner.

Deception

The act of misleading or tricking someone into believing something that is not true, often for personal gain.