If the Price of a Good Increases by 15% and the Quantity

question 28

Multiple Choice

If the price of a good increases by 15% and the quantity demanded falls by 20%,demand is:

• A)price-elastic.
• B)price-inelastic.
• C)price unit-elastic.
• D)normal.

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Definitions:

R&D Costs

Expenses associated with the research and development activities of a company, typically aimed at developing new products or technologies.

Triangular Distribution

A probability distribution shaped like a triangle, which is used to model variables that have known minimum and maximum values and where the mode can be estimated.

NPV Forecast Chart

An NPV Forecast Chart predicts the Net Present Value over time, helping in assessing the profitability of investments.

Cumulative Profit

The total amount of profit earned over a specific period, taking into consideration all revenues and costs.