If the Price of Nacho Chips Increases from $2

question 26

Multiple Choice

If the price of nacho chips increases from $2.00 per bag to $3.00 per bag and the quantity demanded goes down from 100 million bags per week to 50 million bags per week, the absolute value of price elasticity of demand in that price range is

• A) 0.50.
• B) 1.67.
• C) 0.93.
• D) 2.33.

---

Definitions:

Long-Term Liabilities

Debts that will be repaid over a number of years, such as long-term loans and bond issues.