Use the Demand Function $x = 250 \left( 1 - \frac { 5 p } { 7 p + 2 } \right)$

question 74

Multiple Choice

Use the demand function $x = 250 \left( 1 - \frac { 5 p } { 7 p + 2 } \right)$ to find the rate of change in the demand x for the given price $p = \$ 2.00$ . Round your answer to two decimal places.

• A)9.77 units per dollar
• B)-1.95 units per dollar
• C)1.95 units per dollar
• D)3.47 units per dollar
• E)-9.77 units per dollar

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Definitions:

Treasury Stock Approach

A method of calculating the effect of share options on diluted earnings per share by assuming treasury shares are bought at the average market price.

Long-Term Liabilities

Liabilities that are not due to be settled within the next 12 months.

Equity Method

A method of accounting in which an investor records its investment in another entity at original cost and subsequently adjusts this amount for its share of the profits or losses of the investee.

Deferred Losses

Losses that have been recognized in the financial statements but are not yet realized through actual transaction, to be recognized in future periods.