If the Price of Ice Cream Changes by 30 Percent

question 106

Multiple Choice

If the price of ice cream changes by 30 percent and the quantity demanded changes by 75 percent, what is the absolute value of demand elasticity?

• A) 2.5, so demand is inelastic
• B) 0.4, so demand is inelastic
• C) 0.4, so demand is elastic
• D) 2.5, so demand is elastic

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Definitions:

Financial Metric

A quantifiable measure used to assess the financial performance and health of a business entity.

Stock Price

The current price for which a share of a company is bought or sold on the stock market.

Digitized SCM

The use of digital technology to manage and streamline all aspects of the supply chain process, from procurement to distribution.

Siloed Sources

Refers to information or resources that are isolated in separate departments or systems within an organization, hindering integration and efficiency.