Big Alice Ice Cream Parlor Reduced Its Price of an Ice

question 33

Multiple Choice

Big Alice Ice Cream Parlor reduced its price of an ice cream cone from $1 to 90 cents.Sales consequently increased from 1,000 cones per week to 1,050 cones per week.The approximate price elasticity is

• A)0.20.
• B)0.46.
• C)2.16.
• D)5.00.

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Definitions:

Area

A measure of the extent of a two-dimensional figure or shape in a plane.

Price

The amount of money required to purchase a good or service, determined by factors such as supply, demand, and production cost.

Surplus

The amount of a good that is available exceeds the quantity demanded at the current price.

Price

Price is the amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.