If the Price of Ice Cream Changes by 30 Percent

question 86

Multiple Choice

If the price of ice cream changes by 30 percent and the quantity demanded changes by 75 percent, what is the absolute value of demand elasticity?

• A) 2.5, so demand is inelastic
• B) 0.4, so demand is inelastic
• C) 0.4, so demand is elastic
• D) 2.5, so demand is elastic

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Definitions:

Top-down Design

A design methodology that breaks down a system into smaller parts in order to understand, manage, and implement a complex system.

Object-oriented Analysis

Object-oriented Analysis is a computer programming methodology that focuses on defining the types of objects that system operations can apply to rather than the logic of the operations themselves.

Inheritance

In object-oriented analysis, the ability of a new class to automatically pick up all the data and methods of an existing class and then extend and customize those to fit its specific needs.

Inheritance

In object-oriented programming, inheritance is the mechanism of basing an object or class upon another object (prototype-based inheritance) or class (class-based inheritance), retaining similar implementation.