If a 35 Percent Increase in Price of Golf Balls

question 195

Multiple Choice

If a 35 percent increase in price of golf balls led to an 42 percent decrease in quantity demanded, then the demand for golf balls is

• A)unit elastic.
• B)perfectly elastic.
• C)relatively inelastic.
• D)relatively elastic.

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Definitions:

Depreciated Value

The reduced worth of an asset over time due to wear and tear or obsolescence.

Increasing Annuity

A type of annuity payment that grows at a certain rate or percentage over time.

Compounded Monthly

A specific type of compounding where interest is calculated and added to the principal balance monthly.

Principal

The original amount of money borrowed or invested, before interest or profits.