On Most Days the Price of a Rose Is $1

question 20

Multiple Choice

On most days the price of a rose is $1 and 80 roses are purchased. On Valentine's Day demand increases so that the price of a rose rises to $2 and 320 roses are purchased. Therefore, the price elasticity of

• A) supply of roses is about 0.55.
• B) demand for roses is about 1.8.
• C) supply of roses is about 1.8.
• D) demand for roses is about 0.55.

---

Definitions:

Perception

The process by which individuals interpret and organize sensation to produce a meaningful experience of the world.

Sensation

The physical process during which our sensory organs—those involved with hearing, smell, sight, touch, and taste—respond to external stimuli.

Low-involvement Purchase

Buying decisions that are made with minimal research and thought because the product is inexpensive or perceived as low risk.

Smartphone

A mobile phone that offers advanced computing capability and connectivity, including internet access and the ability to run various applications.