The Price Elasticity of Demand for New Cars Is 1

question 8

Multiple Choice

The price elasticity of demand for new cars is 1.2. Hence, a 10 per cent price increase will

• A) decrease the quantity of new cars demanded by 1.2 per cent.
• B) increase consumer expenditure on new cars by 1.2 per cent.
• C) increase consumer expenditure on new cars by 12 per cent.
• D) decrease the quantity of new cars demanded by 12 per cent.

---

Definitions:

Growing Organizations

These are companies or institutions experiencing an increase in size, revenue, employee count, or market presence over time.

Employment Office

A department within an organization or a government agency that handles hiring, job placement, and employment records.

Managers

Individuals responsible for controlling or administering an organization or group of staff and are involved in the planning, directing, and coordination of activities.

Payroll

The process by which employers pay an employee for the work they have completed.