If the Price of Chocolate-Covered Peanuts Decreases from $1

question 237

Multiple Choice

If the price of chocolate-covered peanuts decreases from $1.05 to $0.95 and the quantity demanded increases from 180 bags to 220 bags, this indicates that, if other things are unchanged, the price elasticity of demand is:

• A) -0.5.
• B) -1.
• C) -2.
• D) greater than 2 (absolute value).

---

Definitions:

Express Ratification

The formal affirmation or approval of an act or contract, making it valid and binding.

Age Of Majority

The legal age at which an individual is considered an adult and can engage in activities such as voting and signing contracts.

Entered Into

Refers to the act of formally agreeing to or engaging in an agreement, contract, or arrangement.

Emancipation

The legal process allowing a minor to gain independence from their parents or guardians, assuming adult responsibilities.