If a Company Increased Its Price from $100 to $120

question 16

Multiple Choice

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

• A)2.
• B)1/2.
• C)−1/2.
• D)−2.
• E)4.

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Definitions:

Density

The mass per unit volume of a substance, often measured in grams per cubic centimeter or kilograms per cubic meter.

Volume

The volume of a material or item is determined by the space it fills or is contained within a vessel.

Material

Any substance or mixture of substances intended for use in various processes or for the manufacture of products.

Density

Density is a physical property that measures the mass of a substance per unit volume, used to characterize the compactness of a material.