When the Price of Kittens Was $25 Each,the Pet Shop

question 34

Multiple Choice

When the price of kittens was $25 each,the pet shop sold 20 per month.When they raised the price to $35 each,they sold 14 per month.The price elasticity of demand for kittens is about

• A)1.66.
• B)1.06.
• C)0.94.
• D)0.60.

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Definitions:

Canadian Exports

Goods or services sold by Canada to other countries.

Federal Crown Corporation

A type of corporation in Canada that is federally chartered and owned by the government to conduct various commercial activities and services.

Translation Exposure

Financial risk associated with the translation of foreign currency financial statements into a single reporting currency.

Exchange Rate Risk

The potential loss to a company's finances or operations due to changes in the exchange rate between currencies.