Suppose the Demand Function for a Good Is Expressed as Q

question 33

Multiple Choice

Suppose the demand function for a good is expressed as Q = 100 - 4p.If the good currently sells for $10,then the price elasticity of demand equals

• A) -1.5.
• B) -0.67.
• C) -4.
• D) -2.5.

---

Definitions:

Word-of-Mouth Communication

The act of consumers providing information to other consumers about products or services, typically viewed as a trustworthy source of information.

Formal Promotion Channels

Established pathways within an organization for disseminating information about promotions and advancement opportunities, often structured and officially sanctioned.

Negative Word of Mouth

The act of consumers sharing unfavorable opinions or experiences about a product or service with others.

Credibility

The quality of being trusted, convincing or believable.