"Last October, Due to an Early Frost, the Price of a Pumpkin

question 200

Multiple Choice

"Last October, due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween seasons. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million." Based on this statement, the

• A) demand for pumpkins is elastic.
• B) demand for pumpkins is inelastic.
• C) demand for pumpkins is unit elastic.
• D) demand curve for pumpkins shifted rightward.

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Definitions:

Empirical Research

A way of gaining knowledge by means of direct and indirect observation or experience.

Psychological Theories

Concepts and principles developed to explain and predict behavior and mental processes.

Trial and Error

A problem-solving method involving repeated, varied attempts which are continued until success, or until the practitioner stops trying.

Mood Stabilizer

Medication used to treat mood disorders such as bipolar disorder, helping to prevent extreme shifts in mood.