Suppose When the Price of Calculators Is $18,the Quantity Demanded

question 47

Multiple Choice

Suppose when the price of calculators is $18,the quantity demanded is 90,and when the price is $22,the quantity demanded drops to 70.Using the mid-point method,the price elasticity of demand is:

• A) 1.25
• B) 25 percent
• C) 20 percent
• D) 25

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Definitions:

Problem Recognition

The initial step in the consumer decision process where the consumer identifies a need or realizes the difference between the current and a desired state.

Alternative Evaluation

The process in which consumers compare different products or brands on various attributes to make a purchasing decision.

Consideration Set

A group of brands or products a consumer evaluates when making a purchase decision.

Criteria

Standards or benchmarks used to evaluate or make decisions about something.