Jaycee Jeans Sold 40 Pairs of Jeans at a Price

question 293

Multiple Choice

Jaycee Jeans sold 40 pairs of jeans at a price of $40.When it lowered its price to $20, the quantity sold increased to 60 pairs.Calculate the absolute value of the price elasticity of demand.Use the midpoint formula.

• A)1.67
• B)1.0
• C)0.6
• D)0.53

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Definitions:

Held-to-maturity Securities

Financial instruments that an investor intends and is able to hold until maturity, carrying fixed or determinable payments and fixed maturity.

Noncurrent Assets

Assets expected to provide economic benefits beyond one year or the normal operating cycle of the business, including property, plant, and equipment, as well as intangible assets.

Unrealized Gains

Increases in the value of an asset that has not been sold yet, thus not resulting in actual cash flow or taxable income until the asset is sold.

Trading Securities

Financial instruments such as stocks or bonds that a company holds with the intent of selling them in the short term to profit from price fluctuations.