Suppose the Quantity of Root Beer Demanded Decreases from 105,000

question 120

Multiple Choice

Suppose the quantity of root beer demanded decreases from 105,000 litres per week to 95,000 litres per week when the price rises by 5 percent. The price elasticity of demand

• A)is 2.0.
• B)is 0.5.
• C)is 10.
• D)is inelastic.
• E)cannot be computed unless we know the original price and the new price.

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Definitions:

Depth of Product Line

The range of different items of the same type that a company sells, offering variety to consumers.

Product Classes

Categories or groups of products that serve similar purposes and are perceived by consumers as related or comparable.

Depth of Product Line

Refers to the variety of product options and choices available within a single product category, offering consumers different features, sizes, or other distinguishing characteristics.