If the Price of a Product Increases by 10 Percent

question 63

Multiple Choice

If the price of a product increases by 10 percent and the quantity demanded decreases by 15 percent, then the

• A)product has an elastic demand.
• B)product has an inelastic demand.
• C)product has an elastic supply.
• D)product has a unit-elastic demand.
• E)producer should raise the price further to increase total revenue.

Interpret and analyze statistical data presented in various forms.

Perform and interpret basic calculations for descriptive statistics.

Understand the representation of data through standard deviation and mean.

Analyze and solve problems involving inequalities and their applications.

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Definitions:

Notes Payable

Short or long-term liabilities; a written promise to pay a specified amount of money, known as the principal, along with interest, by a certain date.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.

Common Equity

The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid.

Year 0 Value

Year 0 Value is a reference point in financial analysis indicating the value of an investment or project at the beginning period before any growth or decline.