When a Product's Price Increases from $800 to $1,200, the Quantity

question 35

Multiple Choice

When a product's price increases from $800 to $1,200, the quantity demanded decreases from 11,000 to 9,000. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:

• A)​0.5.
• B)​2.0.
• C)​0.25.
• D)​4.0.

---

Definitions:

Frame Breaks

can refer to interruptions or disconnections in the structural continuity of a building, vehicle, or other objects, often requiring repair or restructuring.

Express Warranty

An explicit promise made by a seller to a buyer regarding the condition, quality, or performance of the goods being sold.

Implied Warranty

A legal presumption that a product will perform as expected, despite no express statement of such quality assurance being made.

Sales Contract

A legal agreement between two parties, where one agrees to buy and the other agrees to sell goods or services under specified terms and conditions.