If a $1 Increase in Price Changes Quantity Demanded by 4

question 118

Multiple Choice

If a $1 increase in price changes quantity demanded by 4 units,the price elasticity of demand

• A)must equal .25 percent.
• B)must equal 4 percent.
• C)must equal 1/4.
• D)cannot be calculated with this information.
• E)must equal 4.

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Definitions:

Dividends Per Share

The total dividends declared by a company for each share of its stock.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated by dividing net credit sales by average accounts receivable.

Days' Sales In Receivables

A financial ratio that measures the average number of days it takes for a company to collect payments from its credit sales.

Price-Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating investor expectations of growth and profitability.