When the Price of Tacos Rise 4 Percent,the Quantity Demanded

question 123

Multiple Choice

When the price of tacos rise 4 percent,the quantity demanded decreases 10 percent.What is the price elasticity of demand for tacos?

• A) 40.0
• B) 25.0
• C) 0.4
• D) 2.5
• E) 10.0

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Definitions:

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for, typically reported on an income statement.

Trading Securities

Financial securities that are purchased by a company not for long-term investment but rather for the purpose of selling them in the short term to generate profit.

Fair Value

Fair value is an estimate of the market value of an asset or liability, based on current prices in an active market or through valuation techniques.