Last Year the Price of Corn Was $3 Per Bushel

question 147

Multiple Choice

Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels. Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.)

• A) 1
• B) 0.47
• C) 2.14
• D) 0.29

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Definitions:

Turnover

The pace at which employees are leaving a company and new individuals are employed in their stead.

Dissatisfaction

The feeling of unhappiness or displeasure arising from unmet expectations or needs in various contexts, such as work or personal relationships.

Plentiful Jobs

indicates a situation or market condition where there are many employment opportunities available.

Honeymoon-Hangover Effect

A phenomenon observed in human behavior or organizational settings where initial enthusiasm and positive feelings (the "honeymoon") are followed by disillusionment or decreased satisfaction (the "hangover").