Suppose a Fall from $110 to $90 in the Price

question 24

Multiple Choice

Suppose a fall from $110 to $90 in the price of playing golf on a public golf course results in an increase in the quantity of golf balls demanded (at the current price of golf balls) from 9,950 units to 10,050 units. The cross elasticity of demand of playing golf with respect to the price of golf balls is

• A)-0.05.
• B)-0.1.
• C)0.01.
• D)0.08.
• E)0.05.

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Definitions:

Open Pickup Truck

A light-duty truck with an open cargo area in the rear, often used for transporting goods and materials.

Appraised Value

The estimated monetary value of an asset determined by a professional appraiser based on its features and market conditions.

Land Account

An account on the balance sheet representing the cost of land owned by a company that is used in its operations.

Appreciated

Increased in value or worth over time, often used in the context of assets like property or investments.