If the Price Elasticity of Demand for Food Is 0

question 140

Multiple Choice

If the price elasticity of demand for food is 0.03, then a 6 percent increase in the price of food will lead to a ________ decrease in quantity demanded.

• A)0.018 percent
• B)0.18 percent
• C)1.8 percent
• D)18 percent

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Definitions:

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Reacquired

Refers to assets, such as stock or securities, that have been bought back by the corporation or entity that initially issued them.

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by shareholders, including both public investors and restricted company insiders.

Reacquired

Reacquired refers to the act of a company buying back its own shares from the marketplace, usually to increase shareholder value or to take advantage of perceived undervaluation.