A Recent Increase in the Supply of Oranges Caused the Price

question 159

Multiple Choice

A recent increase in the supply of oranges caused the price to drop from $5 to $3 per bushel, and quantity demanded to rise from 10,000 bushels to 25,000 bushels. This indicates that the price elasticity of demand for oranges in this price range is

• A) − 0.33.
• B) − 0.58.
• C) − 1.
• D) − 1.71.

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Definitions:

Persuasive Message

Communication designed to convince or influence the audience to adopt a certain viewpoint or take a specific action.

Routine Request

A standard or common inquiry or petition that follows established procedures or guidelines.

Audience Compliance

The extent to which an audience acts in accordance with the requests, guidelines, or directions provided by a communicator or message.

Negative Outcome

An unfavorable or adverse result stemming from a particular action or decision.