This activity is important because marketing managers want to know how sensitive consumer demand is to changes in a product’s price. Price elasticity of demand measures consumer demand reactivity to pricing changes and is expressed as follows: Price elasticity of demand (E) = Percentage change in quantity demanded Percentage change in price The goal of this exercise is to demonstrate your understanding of price elasticity of demand by calculating and classifying the price elasticity of demand for Apple products.

The blumer company entered into the following transactions during 2012: 1. the company was started with $22,000 of common stock issued to investors for cash. 2. on july 1, the company purchased land that cost $15,500 cash. 3. there were $700 of supplies purchased on account. 4. sales on account amounted to $9,500. 5. cash collections of receivables were $5,500. 6. on october 1, 2012, the company paid $3,600 in advance for a 12-month insurance policy that became effective on october 1. 7. supplies on hand as of december 31, 2010 amounted to $225. the amount of cash flow from investing activities would be: