If the Demand Function for a Particular Good Is Q

question 6

Multiple Choice

If the demand function for a particular good is Q = 20 − 8P,then the price elasticity of demand (in absolute value) at a price of $1 is:

• A) 8.
• B) 2.
• C) 2/3.
• D) 1/8.

---

Definitions:

Source Of Cash

Refers to the origination of funds in a business, which could include operations, financing activities, or investment activities.

After-Tax

The amount of income or profit remaining after all taxes have been deducted.

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments.

Cash Flows

The comprehensive total of finances being transferred within and outside a business, affecting its ability to quickly convert assets to cash.