The Price Elasticity of Demand for Best Paints One Gallon

question 112

Multiple Choice

The price elasticity of demand for Best Paints one gallon sized paint cans is 0.79. If Best Paints increased the price of their gallon sized paint cans by 10 percent, which of the following is expected to occur?

• A)The quantity demanded will increase by 0.79 percent.
• B)The quantity demanded will fall by 7.9 percent.
• C)The quantity demanded will increase by 7.9 percent.
• D)The quantity demanded will fall by 0.79 percent.

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Definitions:

High-power-distance Cultures

Societal or organizational cultures that tolerate a larger degree of inequality in the distribution of power and authority.

Monochronic Cultures

Cultures that value doing one task at a time, emphasizing schedules, punctuality, and a linear approach to organizing time.

Polychronic Cultures

Societies that value multitasking and the simultaneous handling of engagements over a focus on punctuality and schedules.

Cultural Intelligence

The capability to relate and work effectively across cultures, understanding and respecting cultural differences.