The Price Elasticity of Demand Is Defined as the Magnitude

question 59

Multiple Choice

The price elasticity of demand is defined as the magnitude of the

• A) change in quantity demanded divided by the change in price.
• B) change in price divided by the change in quantity demanded.
• C) percentage change in quantity demanded divided by the percentage change in price.
• D) percentage change in price divided by the percentage change in quantity demanded.

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Definitions:

Collect

To gather or accumulate items or amounts, often used in the context of collecting funds, debts, or data.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers after receiving goods or services.

Cash Disbursements

Payments in cash made by a business, including expenses, dividend payments, and investment purchases.

Sales

The total amount of goods or services sold by a company, constituting its main source of revenue.