Suppose That When the Price of a Good Falls from $12

question 62

Multiple Choice

Suppose that when the price of a good falls from $12 to $9, the quantity demanded of that good rises from 310 units to 350 units. What is the approximate price elasticity of demand between these two prices?

• A)0.42
• B)2.36
• C)0.68
• D)3.80
• E)1.12

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Definitions:

Salad Dressing

A liquid or semi-liquid condiment added to salads to enhance flavor, ranging from simple vinaigrettes to creamy dressings.

Organic Produce

Food products that are grown without the use of synthetic pesticides, fertilizers, genetically modified organisms, or ionizing radiation.

Store Brand

Products marketed and sold under a retail store's brand name, often positioned as lower-cost alternatives to national brands.

Income Effect

The change in an individual's or economy's consumption choices as income increases or decreases.