If the Quantity Demanded of a Product Rose from 900

question 47

Multiple Choice

If the quantity demanded of a product rose from 900 to 1,200 when the price of the product fell from $11 to $9, the price elasticity of demand coefficient is equal to

• A) −0.20.
• B) −0.70.
• C) −1.00.
• D) −1.42.

---

Definitions:

Merchandise

Goods that are bought and sold as part of business operations, typically in a retail or wholesale setting.

Credit

Credit refers to the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Return of Merchandise

This is when customers return purchased goods to the seller, usually due to defects, dissatisfaction, or the desire for an exchange or refund.

Perpetual Inventory System

An inventory management method that tracks the sale and purchase of inventory in real time to ensure accurate stock levels.