AMA Exam PCM Topic 5 Question 85 Discussion

Actual exam question for AMA's PCM exam

Question #: 85
Topic #: 5

[All PCM Questions]

Novel Electronics sold 400 Technova smartphones in the first week of October 2013 at a price of $250 per unit. The following week, it reduced the price to $230 per unit and it saw sales increase by 20%. What is the price elasticity of demand of Technova smartphones?

A0.5

C1.5

E2.5

Show Suggested Answer

Suggested Answer: B

by Verona at Apr 21, 2024, 06:06 PM

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Mattie

3 hours ago

I agree with Fredric, because the sales increased by 20% when the price was reduced by 8%.

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Fredric

1 days ago

I think the price elasticity of demand is 1.

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