Specialty Chocolate Bars with a High Cocoa Content Have Been

question 216

Multiple Choice

Specialty chocolate bars with a high cocoa content have been drawing a lot of attention in gourmet circles in 2008 but the price of cocoa beans has increased more than 44 percent in this time period. In response to the increase in the price of cocoa beans, Rogue Chocolatier has increased the price of their gourmet chocolate bars by 20 percent. Rogue observes the quantity of their bars sold decreased by 15 percent. This means the price elasticity of demand for gourmet chocolate bars is

• A) elastic.
• B) inelastic.
• C) undefined.
• D) unit elastic.

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Definitions:

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