Exhibit 5-9 The Probability Distribution for the Daily Sales at Michael's Co

question 110

Multiple Choice

Exhibit 5-9
The probability distribution for the daily sales at Michael's Co. is given below.
-Refer to Exhibit 5-9. The expected daily sales are

• A)$55,000
• B)$56,000
• C)$50,000
• D)$70,000

---

Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Quantity Demanded

Quantity Demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price, over a specified time period.

Total Revenue

The complete amount of income generated by the sale of goods and services before any expenses are deducted.

Unit Elastic

A situation in economics where a percentage change in price causes an equal percentage change in quantity demanded or supplied.