Suppose That 50 Ice Cream Cones Are Demanded at a Particular

question 208

Multiple Choice

Suppose that 50 ice cream cones are demanded at a particular price.If the price of ice cream cones rises from that price by 4 percent,the number of ice cream cones demanded falls to 46.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A)demand for ice cream cones in this price range is elastic.
• B)demand for ice cream cones in this price range is inelastic.
• C)demand for ice cream cones in this price range is unit elastic.
• D)price elasticity of demand for ice cream cones in this price range is 0.

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Definitions:

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The process by which water changes from a liquid to a vapor or gas, often driven by heat from the sun.

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The sudden failure and falling in of a cave's ceiling or walls, often due to natural processes such as erosion or the removal of supporting material.