Suppose When the Price of Pizza Goes from $8 to $12

question 143

Multiple Choice

Suppose when the price of pizza goes from $8 to $12 per pie,production increases from 2,500 pies to 4,000 pies per month.Using the mid-point method,the percentage change in price is:

• A) 40 percent
• B) 46 percent
• C) 1.31
• D) 0.35

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Definitions:

Settlement Price

The settlement price is the official price at the end of a trading session on futures exchanges, used for calculations of account margins.

Zero-Sum Game

A situation in which one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Fixed Rate

An interest rate that remains constant over the specified term of a loan or financial instrument, regardless of market fluctuations.

Variable Rate

An interest rate that can change, in contrast to a fixed interest rate, and is often associated with loans or savings accounts.