Consider the Demand Curve Q^d = 500P ^-2

question 62

Multiple Choice

Consider the demand curve Q^d = 500P ^-2. If the price is 1, the elasticity of demand is

• A) -0.50
• B) -2
• C) 500
• D) -500

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Definitions:

Investment Centers

Parts of an organization with direct control over investments and revenues, and responsibility for generating profits, often evaluated through return on investment (ROI) measures.

Profit Centers

Sections or branches of a business that are responsible for generating revenue and are evaluated based on their profitability.

Cost Centers

Parts of an organization that do not directly produce revenue but incur costs, for which managers are responsible for controlling expenses.

Centralized Business Organization

A management structure where decision-making authority is concentrated at the top levels of the organization, with few people responsible for making decisions and setting policies.