The Price Elasticity of Demand for Canned Soup Is Estimated

question 1

Multiple Choice

The price elasticity of demand for canned soup is estimated at -1.62.If the price of canned soup rises, sales revenue________.

• A)falls by 162 per cent.
• B)rises by 1.62 per cent.
• C)falls.
• D)rises.

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Definitions:

Corporate Bonds

Corporate bonds are debt securities issued by corporations to finance their operations, expansion, and other projects, offering interest payments to holders.

Traveler's Checks

Preprinted, fixed-amount checks designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid for that privilege.

Saving Deposits

Accounts held at financial institutions that pay interest but typically have restrictions on withdrawals.

M1

A category of the money supply that includes all physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.