Suppose That 50 Candy Bars Are Demanded at a Particular

question 228

Multiple Choice

Suppose that 50 candy bars are demanded at a particular price.If the price of candy bars rises from that price by 5 percent,the number of candy bars demanded falls to 48.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A) demand for candy bars in this price range is unit elastic.
• B) price increase will decrease the total revenue of candy bar sellers.
• C) price elasticity of demand for candy bars in this price range is about 1.22.
• D) price elasticity of demand for candy bars in this price range is about 0.82.

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Definitions:

Sales Promotion Activities

Marketing efforts designed to temporarily increase interest in a product or service and stimulate sales, such as discounts, coupons, and contests.

Sales Presentations

Talks or demonstrations designed to introduce a product or service to potential buyers, aiming to highlight its value and benefits.

Prospects

Prospects are individuals or entities that have been identified as having the potential to become customers, based on their needs and the solutions a business offers.

Salespeople

Professionals who sell products or services with the aim of meeting customer needs and achieving sales targets.