A Price Elasticity of -2 Means That a Price Reduction

question 19

Multiple Choice

A price elasticity of -2 means that a price reduction of one percent will result in ________.

• A)a decrease in volume by 2%
• B)a decrease in volume by 20%
• C)an increase in volume by 2%
• D)an increase in market share by 20%
• E)a decrease in market share by 2%

Recognize the importance of cultural and language differences in international business activities.

Understand the role of exchange rates in international trade.

Comprehend the implications of currency valuation changes on comparative advantages.

Calculate the cost of preferred stock.

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