The Price Elasticity of Demand Is 5

question 36

Multiple Choice

The price elasticity of demand is 5.0 if a 10 per cent increase in the price results in a _______ decrease in the quantity demanded.

• A) 10 per cent
• B) 50 per cent
• C) 5 per cent
• D) 2 per cent

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Definitions:

Economies Of Scale

The cost advantages that enterprises obtain due to the scale of their operations, typically resulting in lower costs per unit as production increases.

Modular Platform

A design approach where components or systems can be easily interchanged and integrated, enhancing flexibility and scalability.

Virtual Organization

An organizational structure that operates through digital collaboration among geographically dispersed members, relying on technology rather than physical offices.

Information Technology

The use of computers, storage, networks, and other physical devices, infrastructure and processes to create, process, store, secure, and exchange all forms of electronic data.