The Figure Above Shows the Supply Curve for Roses

question 155

Multiple Choice

The figure above shows the supply curve for roses.
-Suppose a decrease in supply raises the price from $4.00 to $5.50 and decreases the quantity demanded from 2,000 to 1,500.Using the midpoint method,the elasticity of demand equals

• A) 2.10.
• B) 1.11.
• C) 0.90.
• D) 0.72.
• E) None of the above answers is correct.

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Definitions:

Statement Of Cash Flows

A financial statement that summarizes the cash inflows and outflows for a company, showing how its cash levels change over time.

Cash Inflows

The total amount of money being transferred into a business, typically from operations, investments, and financing activities.

Cash Outflows

Payments or expenditures made by a business, resulting in a decrease in cash holdings.

Financing Activities

Transactions that involve raising capital, repaying investors, and altering the capital structure of the organization among other financing-related decisions.