If a 10 Percent Rise in the Price of Bananas

question 44

True/False

If a 10 percent rise in the price of bananas leads to a 20 percent reduction in the quantity of bananas demanded,then the price elasticity of demand is 0.50.

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Definitions:

Load Factor

In transportation and logistics, it is the ratio of actual cargo carried to the total carrying capacity available, indicating efficiency in space usage.

Operating Expense

Costs associated with the day-to-day functioning of a business, excluding direct production costs.

Yield

The income generated from an investment, usually expressed as a percentage of the investment's cost or current market value.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.