Refer to the Figure Below

question 27

Multiple Choice

Refer to the figure below. What is the price elasticity of demand when the price of rice is $3 per pound?

• A)0.5
• B)0.67
• C)0.75

---

Definitions:

Inventory

The total amount of goods and materials held by a company intended for sale or used in production.

Service Firms

Businesses that provide intangible products or services to consumers as opposed to tangible goods.

Activity Base

A measure used as a basis for allocating costs in activity-based costing; often related to the volume of activities driving costs.

Costs

Costs represent the monetary value spent on goods, services, and efforts to achieve an objective, such as producing a product or providing a service.