As the Price of Dvds Is Raised from $3 to $5,their

question 8

Multiple Choice

As the price of dvds is raised from $3 to $5,their quantity demanded fell from 200,000 to 180,000.The elasticity of demand of dvds is:

• A)0.21
• B)1.28
• C)3.52
• D)0.65

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Operating Cash Flow

The cash a company generates from its normal business operations, excluding financing and investing activities.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Production Output

The quantity of goods and services produced by a company or sector over a specified period.