If the Price of Oil Goes Up by 50

question 107

Multiple Choice

If the price of oil goes up by 50 % and the quantity demanded goes down by 25%, the absolute value of the price elasticity of demand is

• A) 0.25.
• B) 0.50.
• C) 0.75.
• D) 1.00.

---

Definitions:

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.

ABC Corporation

A hypothetical or generic naming convention used to represent a company in examples or case studies.

Net Income

The amount of money a company keeps as profit once all taxes and expenses are deducted from its total income.

Accounting Records

Documents and ledgers that record financial transactions and the financial position of an entity, serving as the basis for financial reporting and analysis.