The Initial Price for an Item Is $5

question 21

Multiple Choice

The initial price for an item is $5.00, and the quantity demanded is 400 units. When the price is raised to $5.25, the quantity demanded falls to 350 units. The absolute value of the point elasticity of demand is _____.

• A) 2.25
• B) 2.5
• C) 3.5
• D) 2.0
• E) 1.5

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Definitions:

Immediacy

The quality of bringing one into direct and instant involvement with something, without intermediary.

Influencing Response

Influencing response involves strategies or interventions aimed at changing or affecting another's behavior, thoughts, or feelings.

Uncomfortable

A state of physical or mental discomfort, often resulting from adverse situations or environments.

Self-Disclosure

The act of sharing personal information, feelings, or experiences with others, which is an important aspect of building trust and intimacy in relationships.