Suppose There Is a 6 Percent Increase in the Price

question 278

Multiple Choice

Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded.Price elasticity of demand for X is

• A)0.
• B)1.
• C)6.
• D)36.

---

Definitions:

Executory Costs

Expenses associated with executing a contract, including maintenance and insurance, but excluding depreciation.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, especially regarding the quality, durability, or performance of a product or service.

Failure to Renew

The situation occurring when a contract, such as a lease or licensing agreement, is not extended or renewed upon its expiration.

Operating Lease

A lease agreement where the lessor retains ownership, and the asset is returned after the lease term ends.