A Decrease in the Price of Rice from 50 Cents

question 153

Multiple Choice

A decrease in the price of rice from 50 cents to 40 cents a pound increases consumption from 16 to 20 tons a week in Gainesville and from 160 to 200 tons in the larger city of Miami.The elasticity of demand for rice is

• A)greater in Miami than in Gainesville, even taking into account the population difference.
• B)greater in Gainesville than in Miami in spite of the population difference.
• C)equal in Gainesville and Miami regardless of the population difference.
• D)impossible to compare because of the population difference.

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Definitions:

Insularity

A state of being isolated or detached from others, often referring to geographic isolation or a narrow-minded approach to life and other cultures.

Kitty Genovese Case

A murder case that became famous for purportedly demonstrating bystander apathy, leading to research on the "bystander effect."

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Group Polarization

The tendency for group members' opinions to become more extreme (either stronger or weaker) after group discussions.