The Price Elasticity of Demand for Stork Ice Cream Is

question 110

Multiple Choice

The price elasticity of demand for Stork ice cream is -4.Suppose you are told that following a price increase, quantity demanded fell by 10 per cent.What was the percentage change in price that brought about this change in quantity demanded?

• A)40 per cent
• B)25 per cent
• C)2)5 per cent
• D)0)4 per cent

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Definitions:

Optimization Model

An optimization model is a mathematical framework designed to find the most efficient solution to a problem from a set of possible solutions.

Deterministic

Pertains to processes or systems where no randomness is involved in the development of future states, implying exact predictability given initial conditions.

Optimal Solution

The best possible outcome from a selection of alternatives, based on a specific set of criteria or constraints.

Constraints

Limitations or restrictions that affect the planning, execution, and outcome of projects or processes.