Use the Following Information for the Next 2 Questions

question 105

Multiple Choice

Use the following information for the next 2 questions.
TTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful:
-TTV's price elasticity of demand is

• A) -3.973
• B) -0.252
• C) +0.322
• D) +3.108

Develop critical thinking skills by analyzing and evaluating logical structures of arguments.

Understand the concept of cohort and its influence on individuals based on shared experiences.

Differentiate between normative and nonnormative life events.

Recognize the impact of historical and cultural contexts on development.

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Definitions:

Taxes

Mandatory financial charges imposed by governments on individuals or entities to fund public expenditures, with failure to pay typically resulting in legal penalties.

Canada Pension Plan

A mandatory public insurance program in Canada that provides income in retirement, as well as benefits to the disabled and survivors of deceased contributors.

Contributory Benefit

A type of financial assistance that individuals receive based on their previous contributions to a welfare system, typically through taxes or specific insurance schemes.

Performance Incentives

Rewards linked to the accomplishment of specific performance targets or objectives designed to motivate and reward employees.