Suppose That When the Price of a Good Falls from $12

question 62

Multiple Choice

Suppose that when the price of a good falls from $12 to $9, the quantity demanded of that good rises from 310 units to 350 units. What is the approximate price elasticity of demand between these two prices?

• A)0.42
• B)2.36
• C)0.68
• D)3.80
• E)1.12

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Definitions:

Tech Support Department

A business division focused on providing assistance and advice regarding a company's products or services, especially related to software, hardware, or other technology issues.

Routing Calls

The process of directing phone calls to the correct department or individual within a business or organization.

Customer Cost Analysis

The process of analyzing the costs associated with acquiring, serving, and retaining customers to determine profitability.

Order Fulfillment Department

The division of a company responsible for processing and delivering orders to customers.