-If the Price of Moonlight Massage Oil Decreases from $3

question 126

Multiple Choice

-If the price of Moonlight massage oil decreases from $3 to $2.50 and,as a result,total revenue increases from $6,000 to $7,500,what is the elasticity of demand?

• A)0.22.
• B)0.55.
• C)1.22.
• D)1.67.
• E)2.2.

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Definitions:

Total Available Market

The overall revenue opportunity available or total demand for a product or service within a market.

Entrepreneur-Intended

Describes a person or action deliberately aimed at creating new ventures or businesses, typically with a plan and intention to grow.

Market Sizing

A method of estimating the number of potential customers and possible revenue or profitability of a product or service.

Customer Base

The group of customers or consumers who repeatedly purchase the goods or services of a business, forming the foundation of the company's sales.