In the Figure Above,when the Price Rises from $3 to $4,the

question 165

Multiple Choice

In the figure above,when the price rises from $3 to $4,the price elasticity of demand is

• A) 1.4.
• B) 2.
• C) 0.71.
• D) 0.4.
• E) 1.

---

Definitions:

Break-Even Sales

The amount of revenue that is exactly sufficient to cover both fixed and variable costs, resulting in neither profit nor loss.

Break-Even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Total Dollar Sales

The aggregate revenue a company generates from the sale of its goods or services before any expenses are subtracted.

Net Operating Income

A company's income from operations, calculated as gross profit minus operating expenses, excluding taxes and interest.