Theta, Inc Which of the Following Is the Price Elasticity of Demand

question 138

Multiple Choice

Theta, Inc., sells three different products. The following information is provided by Theta: $\begin{array}{lrrrr}&&&\text { Sales Quantity }&\text { Sales Quantity }\\\text { Product } & \text { Old Price } & \text { New Price } &\text { (at old price) }&\text { (at NEW price) }\\\text { Alpha } & \$ 20.00 & \$ 25.00 & 5,000 & 5,100 \\\text { Beta } & 10.00 & 5.00 & 8,000 & 14,000 \\\text { Gamma } & 40.00 & 39.00 & 900 & 850\end{array}$ Which of the following is the price elasticity of demand for the product Beta? (Give the answer to one decimal place.)

• A)?1.5
• B)1.2
• C)?2.2
• D)2.5

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Definitions:

Major Dimensions

Refers to primary or principal measures or aspects that define or form the structure of a concept, object, or system.

Hofstede

A reference to Geert Hofstede, a Dutch social psychologist known for his work on cultural dimensions theory, which analyzes cross-cultural communication and differences.

Cultural Behaviors

Patterns of actions and social practices that are characteristic of a particular community or society.

Stereotypical Behaviors

Actions or attitudes that are oversimplified and widely held about a particular type of person or group, often based on generalizations.