A 20 Per Cent Increase in the Quantity of Pizza

question 35

Multiple Choice

A 20 per cent increase in the quantity of pizza demanded results from a 10 per cent decline in its price. The price elasticity of demand for pizza is

• A) 10.0.
• B) 20.0.
• C) 2.0.
• D) 0.5.

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Definitions:

Screened Out

The process of eliminating candidates or options that do not meet predefined criteria.

Implicit Costs

Implicit costs are the opportunity costs of using resources owned by the firm for its own use instead of other purposes.

Explicit Costs

Money paid out to different parties during the operation of a business, covering expenses like employee salaries, leasing costs, and material purchases.

Opportunity Costs

The value of the next best alternative forgone as a result of making a particular choice.