When Mark-Up Equals 50% and AC = MC,then Demand Elasticity

question 48

Multiple Choice

When mark-up equals 50% and AC = MC,then demand elasticity will be

• A)-1.
• B)-1.5.
• C)-2.
• D)-3.

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Definitions:

Creationism

The belief that the universe and living organisms originate from specific acts of divine creation, as in the biblical account, rather than by natural processes such as evolution.

Evolution

The mechanism through which a range of life forms are considered to have emerged and branched out from previous versions during Earth's historical timeline.

Punctuated Equilibrium

A theory in evolutionary biology which proposes that species evolve rapidly in short bursts, followed by long periods of evolutionary stasis.

Darwin Model

A reference to Charles Darwin's theory of evolution by natural selection, which posits that organisms evolve through a process where individuals with traits better suited to their environment are more likely to survive and reproduce.