Suppose There Is a 10 Per Cent Increase in the Price

question 26

Multiple Choice

Suppose there is a 10 per cent increase in the price of fish and a resulting five per cent decrease in the quantity of fish demanded. The price elasticity of demand for fish is:

• A) 10
• B) 5.0
• C) 2.0
• D) 0.5

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Definitions:

Economic Value

Economic value refers to the value of a good or service determined by its capacity to satisfy human wants and needs, often reflected in willingness to pay.

Value-based Pricing

A pricing strategy that sets prices primarily based on the perceived or estimated value of a product or service to the customer rather than on the cost of the product or historical prices.

High Pressure Pump

A pump designed to operate at high pressures, commonly used in various industrial processes, including water treatment, hydraulic systems, and in the oil and gas industry.

Preventive Maintenance

Routine maintenance and inspections to prevent potential failures or breakdowns of equipment.