If the Price of a Good Decreases by 10% and the Quantity

question 15

Multiple Choice

If the price of a good decreases by 10% and the quantity demanded increases by 5%, then at that price, the good is

• A)elastic.
• B)inelastic.
• C)perfectly inelastic.
• D)perfectly elastic.

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Definitions:

Desired Ending Inventory

The amount of inventory a business plans to have on hand at the end of a specific period, often used for planning production or purchasing.

Sales Budget

A detailed schedule showing expected sales expressed in both dollars and units.

Credit Sales

Sales made on credit, where payment is received after the goods or services are delivered.

Cash Sales

Transactions where the purchase of goods or services is paid for with cash at the time of sale.