If the Price Elasticity of Demand for Grapes Was 2

question 168

Multiple Choice

If the price elasticity of demand for grapes was 2.5,

• A) the demand for grapes would be considered inelastic.
• B) an increase in the price of grapes would decrease total consumer spending on grapes.
• C) consumer purchases are less sensitive to a change in the price of grapes than to a change in the price of bananas, which have a price elasticity of 1.6.
• D) the income elasticity for grapes must also be 2.5.