If a 15% Increase in Price for a Good Results

question 116

Multiple Choice

If a 15% increase in price for a good results in a 20% decrease in quantity demanded,the price elasticity of demand is

• A)0.75.
• B)1.25.
• C)1.33.
• D)1.60.

---

Definitions:

Operating Expenses

The costs associated with the normal operations of a business, such as salaries, rent, and utilities.

Financial Statements

Compiled reports detailing the financial activities and position of a business, person, or other entity.

Accrual Basis

A financial recording strategy where income and costs are documented at the point they are generated or incurred, irrespective of the timing of cash transactions.

Accounting Principles

The standardized guidelines and rules that govern financial accounting and reporting practices.