Suppose That 300 Bottles of Soda Are Demanded at a Particular

question 151

Multiple Choice

Suppose that 300 bottles of soda are demanded at a particular price.If the price of a bottle of soda rises from that price by 6 percent,the number of bottles of soda demanded falls to 275.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A)demand for bottles of soda in this price range is perfectly elastic.
• B)price increase will increase the total revenue of soda sellers.
• C)price elasticity of demand for bottles of soda in this price range is about 0.69.
• D)price elasticity of demand for bottles of soda in this price range is about 1.45.

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Definitions:

Ortony

Andrew Ortony is a cognitive scientist known for his work in the areas of emotions and cognitive psychology.

Schemata

Cognitive structures that represent organized knowledge about a given concept or type of stimulus, based on past experience.

Brooks

Refers to the work of psychologist Allan Brooks, known for contributions in cognitive psychology, especially in visual and spatial memory.

Exemplars

Specific instances or examples within a category that are used in cognitive psychology to theorize how people categorize items and ideas.