As the Price for Some Product Decreases from $4

question 81

Multiple Choice

As the price for some product decreases from $4.00 to $3.00 per unit,quantity demanded increases from 400 to 500 units per day.For this segment of the demand curve,the price elasticity of demand is

• A)7/9.
• B)1.
• C)9/7.
• D)7.
• E)9.

---

Definitions:

Current Liability

A company's debt or obligations that are due within one year.

Recognized Revenues

This accounting concept refers to revenues that have been earned (goods or services have been delivered), and there is a reasonable certainty of collection.

Cash Currently

Liquid funds that are readily available for use in the immediate or near future.

Notes Payable

Short-term or long-term liabilities represented by promissory notes that a company promises to pay back at a future date with interest.