For a Certain Good, When the Good's Price Falls from $22

question 41

Multiple Choice

For a certain good, when the good's price falls from $22 to $20, its quantity demanded rises from 2,000 to 2,200 units. Given this information, the price elasticity of demand for this good is approximately

• A)2.55.
• B)0.66.
• C)0.39.
• D)0.20.
• E)1.00

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Definitions:

Sale of Goods

A transaction involving the transfer of tangible personal property from seller to buyer, under terms and conditions outlined in a contract.

Completed

Refers to the state of having finished an activity or project.

Title

The legal right to own or possess something, such as property or a vehicle, often represented by a document proving ownership.

Deposit

A sum of money placed with a bank or other financial institution for safekeeping, or as partial payment in a purchasing process ensuring the buyer's intent to carry out the contract.