If the Price Elasticity of Demand Is 1

question 5

Multiple Choice

If the price elasticity of demand is 1.2 and the marginal revenue is $20, what is the price of the product?

• A)$12
• B)$20
• C)$120
• D)$1,200

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Definitions:

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

National Debt

The complete value of funds that a nation's administration has accrued as debt through various methods.

Built-In Stabilizers

Automatic fiscal mechanisms, such as progressive taxation and welfare payments, that help to moderate the fluctuations of an economy's output without additional legislative action.

Income Tax Collections

The process of collecting taxes imposed on individuals or entities based on their income or profits by the government.