If Quantity Increases by 15 Percent When Prices Decrease 5

question 59

Multiple Choice

If quantity increases by 15 percent when prices decrease 5 percent,then elasticity for this product is _____

• A)15.
• B)10.
• C)5.
• D)3.
• E)1.

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, used in double-entry bookkeeping.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Decrease

A reduction in the size, amount, or rate of something.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services delivered or used but not yet paid for, typically recorded as an asset on the balance sheet.