The Price Elasticity of Demand for Rosie's Roses Fresh Flowers

question 53

Multiple Choice

The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.10 and is 1.60 other days of the year. If Rosie's Roses faces a constant marginal cost of $0.75 per rose, what is the profit- maximizing peak- load price to charge the week of Valentine's Day?

• A)$8.25
• B)$6.50
• C)$2.00
• D)$11.00

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Definitions:

Historical Standard Deviation

A measure of volatility or variability based on past data, indicating how much the values in a dataset have deviated from the mean over a certain period.

LSAT Exam

The Law School Admission Test, a standardized test designed to assess critical reading, analytical reasoning, and logical reasoning skills.

National Average

The average of a specific variable or measurement across an entire nation, often used in economic, educational, or environmental statistics.

University of Pennsylvania

An Ivy League research university located in Philadelphia, known for its strong programs in business, engineering, and medical research.