Suppose the quantity demanded of ski boats falls from 4.0 million to 3.0 million as a result of an average price increase from $20,000 to $25,000 per boat. The absolute value of the price elasticity of demand is closest to (in absolute value) :

1.29

Explanation:

Percentage change in quantity demanded = (4 - 3) ÷ ((4 + 3)/2) =  0.285714285714286

Percentage change in price = (25,000 - 20,000) ÷ ((20,000 + 25,000)/2) = 5,000/20,000 = 0.222222222222222

Absolute value of the price elasticity of demand = 0.285714285714286 ÷ 0.222222222222222 = 1.29

answer; (d) i believe that the correct answer is ; /// a new invention lowers the cost of production;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know