Let the Price Elasticity of Demand for a Soft Drink $\$ 1.00$

question 43

Multiple Choice

Let the price elasticity of demand for a soft drink be - 2. In the year 2005 , the per capita consumption of soft drinks was about 500 cans per person, and the average price was $\$ 1.00$ per can. If we suppose that demand for the soft drink is linear, $Q ^ { d } = a - b P$ , where $a$ and $b$ are constants, $Q ^ { d }$ is quantity demanded and $P$ is price, an estimate of the demand equation could be:

• A) \(Q ^ { d } = 100 - 2 P\)
• B) \(Q ^ { d } = 1500 - 2 P\)
• C) \(Q ^ { d } = 1500 - 1000 P\)
• D) \(Q ^ { d } = 1000 - 1500 P\)

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