-If the Price of Digestive Fire Herbal Tablets Increases from $35

question 20

Multiple Choice

-If the price of Digestive Fire herbal tablets increases from $35 to $45 a bottle and,as a result,the seller's total revenue increases from $77,000 to $94,500 per month,what is the elasticity of demand?

• A)0.08.
• B)0.19.
• C)0.82.
• D)1.26.
• E)2.14.

---

Definitions:

Legal Tying

Refers to a potentially prohibited practice where a seller requires the purchase of an unwanted item or service in order to buy the desired item.

Fee Simple Absolute

The highest and most complete form of property ownership, granting the owner unlimited rights to the property.

Property Rights

Legal rights to own, use, and dispose of assets, including real estate and personal property.

Land

The surface of the earth and any attached natural or man-made structures, considered as property.