All economic systems must answer the 3 basic questions:
1. What goods and services will be produced
2. How will the goods and services be produced?
3. Who will consume the goods and services?
I would say that a business oriented company would require the customers to come directly to the retail store to see the merchandise and decide whether to purchase it or not as opposed to salesmen/women that go actively to businesses to demonstrate and give a sales pitch for their products. The former case would be like a furniture store for consumers whereas the latter case could be like a mine that uses industrial equipment like pumps, trucks etc.
Answer:
Option (C) is correct.
Explanation:
Given that,
own price elasticity of demand = -1.5
Percentage change in price of apple = 6 percent
Therefore,
Own price elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in price
1.5 = Percentage change in quantity demanded ÷ 6
Percentage change in quantity demanded = 1.5 × 6
= 9 percent
Hence, the quantity demanded for apple increases by 9 percent when the price fall by 6 percent.