If a 50 Percent Increase in the Price of Pizza

question 117

Multiple Choice

If a 50 percent increase in the price of pizza results in a 25 percent decrease in the quantity demanded of pizza,then the elasticity of demand for pizza:

• A)is equal to 0.5 and demand is inelastic.
• B)is equal to 0.5 and demand is elastic.
• C)is equal to 2 and is elastic.
• D)is equal to 2 and is inelastic.
• E)cannot be determined from the information provided.

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Definitions:

Monetary Error

A monetary error refers to inaccuracies or mistakes in financial transactions or accounting, which can impact financial statements or balances.

Confidence Interval

It refers to the range within which we expect a population parameter to lie with a certain degree of confidence, based on sample data.

Sample Mean

The average value of a given characteristic within a sample drawn from a population.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products, quantities, and agreed prices for products or services.