The Demand for Fax Machines in Thousands of Units Has

question 15

Multiple Choice

The demand for fax machines in thousands of units has been estimated to be Q = 1,000 - 1.5P + 5L,where P is the price of the machines and L is the average cost of a 10-minute midday call from Los Angeles to New York.At a fax machine price of $400 and a phone call cost of $10,the price elasticity of demand for fax machines is:

• A) -4.0.
• B) -2.50.
• C) -0.61.
• D) -0.25.
• E) -1.33.

---

Definitions:

Vidalia Onions

A specific variety of sweet onion grown in Georgia, known for its mild flavor, recognized by its geographical indication.

Total Annual Cost

The sum of all expenses incurred by a business or operation over the course of a year.

Current System

The existing set of procedures, processes, technologies, and methods that are in use within an organization or system.

Finished-Goods Inventories

Stocks of completed products ready for sale or distribution to customers.