If the Price Elasticity of Demand for a Good Is

question 185

Multiple Choice

If the price elasticity of demand for a good is 0.8,then a 12 percent increase in the quantity demanded must be the result of

• A)a 0.06 percent decrease in the price.
• B)a 1.5 percent decrease in the price.
• C)a 9.6 percent decrease in the price.
• D)a 15 percent decrease in the price.

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Definitions:

Cash Overage

A situation where the actual cash on hand exceeds the expected amount, often due to errors in handling or recording.

Shortage

A situation where the demand for a product or resource exceeds the available supply.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Limitations

Constraints or restrictions that affect the scope, effectiveness, or validity of a process, analysis, or system.