Suppose That the Amount of Portable Power Banks Demanded Increases

question 351

Multiple Choice

Suppose that the amount of portable power banks demanded increases by 10 percent when the price of personal computers falls by 5 percent. The cross price elasticity of demand between portable power banks and personal computers is

• A) 0.5.
• B) -2.0.
• C) -0.5.
• D) 2.0.

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Definitions:

Net Income

The amount of profit left over, after all expenses and taxes have been subtracted from total revenue.

Performance Bonuses

Performance bonuses are additional compensation provided to employees as a reward for achieving or surpassing predefined performance targets.

Inventory Cost Formula

Methods used to calculate the cost of inventory sold or on hand, such as FIFO (First In, First Out), LIFO (Last In, First Out), or weighted average.

Consistent Application

The principle that companies should apply accounting policies uniformly throughout reporting periods to ensure comparability of financial statements over time.