-Refer to Exhibit 6-3

question 66

Multiple Choice

-Refer to Exhibit 6-3.Prices changed by ___________ percent between year 1 and year 2.

• A) -1.6
• B) -1.7
• C) 1.6
• D) -2.3
• E) 2.3

---

Definitions:

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Kinked-demand Curve

A demand curve that has a distinct bend or kink, typically illustrating that a firm in an oligopoly will experience a different elasticity of demand for price increases compared to price decreases.

Price Cut

A reduction in the price of a good or service to attract more customers or boost sales.

Price Increase

A rise in the cost of goods or services, often measured by inflation rates or observed in market prices.