Table 5-2 -Refer to Table 5-2

question 227

Multiple Choice

Table 5-2
$$\begin{array} { | l | l | } \hline \text { Priea } & \text { Quintit } \\\hline \$ 100 & 0 \\\hline \$ 80 & 10 \\\hline \$ 60 & 20 \\\hline \$ 40 & 30 \\\hline \$ 20 & 40 \\\hline \$ 0 & 50 \\\hline\end{array}$$
-Refer to Table 5-2. Using the midpoint method, if the price falls from $80 to $60, the absolute value of the price elasticity of demand is

• A) 20.
• B) 10.
• C) 2.33.
• D) 0.43.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with rights to share in its profits through dividends and capital appreciation.

Sold Shares

Refers to the act of transferring ownership in a corporation's stock from one party to another in exchange for money or other compensation.

Dividend

A portion of a company's earnings that is distributed to shareholders as a return on their investment.

Trading Portfolio

A collection of financial assets held by an individual or institution primarily for the purpose of short-term trading and profit.