A Company Currently Sells 10,000 Bottles of "Bright Pink" Nail

question 4

Multiple Choice

A company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle. If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles. What is the price elasticity of demand of the nail varnish?

• A) -2.0
• B) +2.0
• C) -0.5
• D) +0.5

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Definitions:

Column Heading

The title or label at the top of a column in a table or spreadsheet, indicating the type of data or information contained within the column.

Portrait Orientation

The vertical alignment of a document or image, where the height is greater than the width.

Database Table

A structured arrangement of data in rows and columns in a database, where each row typically represents a record and columns represent attributes of the record.

Redundancy

The inclusion of extra components that are not necessarily needed, often used in systems to increase reliability.