If the Price Elasticity of Demand for Peanut Butter Is

question 255

Multiple Choice

If the price elasticity of demand for peanut butter is 2.4, then peanut butter

• A) has an elastic demand.
• B) has an inelastic demand.
• C) has a unit elastic demand.
• D) is a normal good.

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Definitions:

Pretzels

A type of baked pastry made from dough that is commonly shaped into a knot or twisted form, often savory or sweetened.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and prices of goods.

Good X

A placeholder term used to denote a specific product or commodity in economic models and discussions.

Good Y

A term used in economics to represent a generic second good, often used in theoretical models comparing two different goods.