When Price = $16, Quantity Demanded = 200

question 17

Multiple Choice

When price = $16, quantity demanded = 200. When price = $14, quantity demanded = 225. When the firm lowered price from $16 to $14, it discovered that demand is __________ and total revenue __________ by ____________,

• A)elastic; increased; $3,200
• B)elastic; decreased; $3,150
• C)inelastic; increased; $50
• D)inelastic; decreased; $50
• E)inelastic; decreased; $3,150

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Definitions:

Expected Dividend Yield

A forecasted annual percentage of return that comes from dividends paid by the stock, calculated by dividing the anticipated annual dividend by the current stock price.

Expected Growth Rate

The rate at which a company, investment, or economy is anticipated to grow over a specified period.

Constant Rate

This term refers to a fixed rate over a period of time, often used in the context of financial instruments with fixed interest rates.

Projected Increase

An estimate or forecast of the amount by which something is expected to grow within a certain time frame.