The Demand Curve for a Product Is Q = 50

question 47

Multiple Choice

The demand curve for a product is Q = 50 - 0.5P. What is the price elasticity of demand at a price of $60?

• A) -1.50
• B) -1.0
• C) -0.80
• D) -0.25

Understand the concept of scarcity and its implications for economic decision-making.

Recognize the role of resources in economic activities and their categorization.

Identify the purpose and scope of economics in analyzing social problems and resource allocation.

Understand the significance of capital in economics and differentiate between types of goods.

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Definitions:

Controllable

Refers to costs or elements within a business that can be directly managed, influenced, or altered by decisions of management.

Noncontrollable

Refers to expenses or influences that cannot be altered or changed by the management due to external constraints or fixed contract terms.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.

Master Budget

A comprehensive financial planning document that consolidates all of the smaller budgets within a company into one overview, showing the total planned activities for an upcoming period.