Refer to the Above Data

question 110

Multiple Choice

Refer to the above data.What is the elasticity of demand between the prices of $3 and $2?

• A) 0.22
• B) 0.40
• C) 0.56
• D) 1.22 The change in quantity is (400 - 500)/(400 + 500)= 0.111 and the change in price is (2 - 3)/(2 + 3)= 0.20.Thus,elasticity is 0.56.

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Definitions:

Establishing Responsibilities

A principle of internal control that aims to clearly define roles and duties within an organization to ensure accountability and efficient operations.

Internal Control System

A process employed by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Risk of Loss

The potential for an investment's actual return to differ from the expected return, including the possibility of losing some or all of the original investment.

Profitable Operations

Operations within a business that generate more revenue than the costs incurred to perform them, leading to a profit.