Exhibit 19-9 ​ Refer to Exhibit 19-9.  What Is the Price Elasticity of the Price

question 129

Multiple Choice

Exhibit 19-9 ​

Refer to Exhibit 19-9.  What is the price elasticity of demand between $4 and $6?

• A)0.825
• B)0.833
• C)1.25
• D)1.20

---

Definitions:

Four-Firm Concentration Ratio

a measure of market concentration and competition among the four largest firms in an industry, expressed as a percentage of total market sales.

Oligopolistic Industry

An industry characterized by a small number of firms that have significant control over market prices and where strategic interactions among these firms determine market dynamics.

Herfindahl Index

The Herfindahl Index is a measure of market concentration used to evaluate the level of competition within an industry, calculated as the sum of the squares of each firm's market share.

Four-Firm Concentration Ratio

An economic measure that assesses the concentration and competitive landscape of an industry by adding the market shares of the four largest firms.