If a Company Increased Its Price from $100 to $120

question 16

Multiple Choice

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

• A)2.
• B)1/2.
• C)−1/2.
• D)−2.
• E)4.

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Definitions:

Financial Records

Documents that outline an entity's transactions, financial history, and condition, such as balance sheets and income statements.

Fair Representation

The principle that every member of a group has the right to equal and impartial representation, often applied in legal contexts and union operations.

Near-Privity Rule

A legal doctrine allowing a non-contractual party who is closely related to a contractual agreement to assert rights or claims under that contract.

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.