Figure: the Demand for Shirts (Figure: the Demand

question 29

Multiple Choice

Figure: The Demand for Shirts (Figure: The Demand for Shirts) Look again at the figure The Demand for Shirts.The price elasticity of demand for the segment EF, using the midpoint method, is:

• A)1.3.
• B)1.
• C)0.7.
• D)0.33.

---

Definitions:

Depreciation

The method of allocating the cost of a tangible asset over its useful life.

Fixed Assets

Long-term tangible assets that are expected to be used in the operation of a business for a length of time, typically over one year.

Useful Life

The estimated duration of time that an asset is expected to be economically usable by the owner.

Prepaid Item

An expense paid in advance before receiving the benefit of the service or good.