Suppose the Price Elasticity of Demand for Apples Is 2

question 70

Multiple Choice

Suppose the price elasticity of demand for apples is 2.1 and the price elasticity of demand for housing is 0.62. In comparing price elasticities of demand, it is proper to say that the demand for apples is

• A)inelastic; for housing it is elastic.
• B)more elastic than the demand for housing.
• C)more inelastic than the demand for housing.
• D)more than three times as inelastic as the demand for housing.
• E)less elastic than the demand for housing.

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Definitions:

Equality

A condition of parity, particularly in matters of status, rights, and chances.

Economic Pie

A metaphorical term indicating the total amount of wealth or resources available for distribution within an economy.

Efficiency

Refers to the ability to achieve a desired result without wasting materials, time, or energy.

Equality

The circumstance in which all individuals possess identical opportunities, rights, and standing.