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Electricity is an example of an item with price-inelastic demand
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- In a perfectly competitive market, a. neither producers or consumers are price-takersb. producers are price-takersc. consumers are price-takersd. both producers and consumers are price-takers
- A firm is determining the price of a new product and uses a mark-up of 50%. If direct out-of-pocket cost is $50,000 and fully loaded manufacturing cost is $150,000, what price should be suggested if the firm uses cost-plus pricing?a.) $75,000b.) $150,000c.) $200,000d.) $225,000
- Which of the following is the correct formula for the Price Elasticity of Demand?a.) Percentage change of demand/percentage change in priceb.) Percentage change in price/percentage change in demandc.) Percentage change in supply/percentage change in demandd.) Percentage change in demand/percentage change in supply