Refer to the scenario above. What is the quantity effect of the price change?

The efficiency loss that occurs when a market is monopolized is known as:

a. a deadweight loss. b. an inventory loss. c. an economic loss. d. a non-economic loss. e. a capital loss.

A sporting goods store observes that as they reduce the price of squash balls from $5 to $4, their quantity demanded rises from 200 to 220. Rounding to the nearest tenth, they correctly compute the elasticity of demand of squash balls to be:

A. 2.3. B. 5. C. 0.4. D. 0.1.