Figure 4.1.4 -Figure 4.1.4 Shows the Demand Curve for Pizza.At What Price

question 31

Multiple Choice

Figure 4.1.4
-Figure 4.1.4 shows the demand curve for pizza.At what price is the price elasticity of demand equal to 1?

• A)$12.50
• B)$15.00
• C)$10.00
• D)$25.00
• E)zero

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Definitions:

Long-Run Equilibrium

A state where all factors of production are variable, leading to the optimal distribution of resources in the market.

Demand Curve

A chart that illustrates the link between a product's cost and the amount of the product consumers want to buy at those prices.

Cherry Industry

A sector of agriculture that focuses on the cultivation, harvest, and distribution of cherries.

Efficiently Allocated

A situation where resources are distributed in a manner that maximizes the overall benefit to society or an economy, with no way to improve anyone's condition without worsening someone else's.