The Own-Price Elasticity of Demand for Apples Is -1

question 120

Multiple Choice

The own-price elasticity of demand for apples is -1.2.If the price of apples falls by 5%, what will happen to the quantity of apples demanded?

• A)It will increase 5%.
• B)It will fall 4.3%.
• C)It will increase 4.2%.
• D)It will increase 6%.

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Definitions:

Gains

The monetary increase in value of an asset or investment over its purchase price.

Maximum Possible Gain

The highest profit that can be achieved in an investment.

SEC Rule 415

Known as "shelf registration," this SEC rule allows companies to register a new issue of securities without selling the entire issue at once.

Shelf Registration

A regulatory provision that allows an issuer to register a new issue of securities without selling the entire issue at once, facilitating future sales.