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

question 33

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 off- peak load price to charge on days not on the week of Valentine's Day?

• A)$1.25
• B)$8.50
• C)$2.00
• D)$5.00

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Definitions:

Internally Oriented

Focusing on one's internal thoughts, feelings, and motivations rather than external stimuli.

Collectivist Cultures

Societies that emphasize the needs and goals of the group as a whole over the needs and desires of each individual.

Individualistic Cultures

Societies that emphasize the needs, goals, and rights of the individual over the needs of the group as a whole.

External Locus of Control

Refers to the belief that outside forces, beyond one's personal control, largely dictate one's life events.