If the Price Elasticity of Demand for a Good Is

question 145

Multiple Choice

If the price elasticity of demand for a good is 4,then a 12 percent decrease in price results in a

• A)0.33 percent increase in the quantity demanded.
• B)3 percent increase in the quantity demanded.
• C)30 percent increase in the quantity demanded.
• D)48 percent increase in the quantity demanded.

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Definitions:

Channel Members

Businesses or individuals that participate in the distribution channel, performing functions that add value in moving a product from the manufacturer to the customer.

Profit Margins

A financial metric that measures the percentage of revenue that exceeds the costs of producing goods or services.

Program Champion

An individual who passionately promotes and supports a project or initiative within an organization, driving its success.

Grace Murray Hopper

An American computer scientist and United States Navy rear admiral who made significant contributions to the development of computer languages and was a pioneer in computer programming.