Hanson Corporation Recently Changed the Selling Price of One of Its

question 2

Multiple Choice

Hanson Corporation recently changed the selling price of one of its products.Data concerning sales for comparable periods before and after the price change are presented below. The product's price elasticity of demand as defined in the text is closest to:
$$\begin{array}{l}\text { Selling Price}&\text { Unit Sales }\\\$ 62.00 & 5,200 \\\$ 63.00 & 5,000\end{array}$$

• A)-1.71
• B)-1.65
• C)-1.85
• D)-2.45

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Definitions:

On the Origin of Species

A seminal work by Charles Darwin published in 1859 that introduced the scientific theory of evolution by natural selection.

Charles Darwin

A 19th-century naturalist and geologist, best known for his contributions to the science of evolution by proposing the theory of natural selection.

Adaptive Behavior

The collection of conceptual, social, and practical skills that individuals have developed to function in their everyday lives.

Biologically Determined

Traits, characteristics, or behaviors that are shaped by genetic makeup rather than environmental factors.