A Fall in the Price of a Good from $11

question 138

Multiple Choice

A fall in the price of a good from $11.50 to $8.50 results in an increase in the quantity demanded from 19,200 to 20,800 units. The price elasticity of demand is

• A)0.27.
• B)3.75.
• C)0.08.
• D)8.0.
• E)30.

---

Definitions:

Power To Revoke

The legal authority to cancel or withdraw a decision, offer, or agreement.

Promises

Declarations or assurances that one will do something or that a particular thing will happen.

Subjective Intent

A legal concept focusing on what an individual personally intended to happen or believed would happen, rather than the objective outcome of their actions.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.