Suppose the Price Elasticity of Demand for Good a Is

question 80

Multiple Choice

Suppose the price elasticity of demand for Good A is 2.4 and the price elasticity of demand for Good B is 1.2. Which of the following statements is consistent with these values?

• A) Good A is a luxury and Good B is a necessity.
• B) Good A is a good several days after a price increase while Good B is that same good several years after the price increase.
• C) Good A is ice cream and Good B is mint chocolate chip ice cream.
• D) Good A is salt and Good B is college tuition.

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Definitions:

Drive Bays

Compartments within a computer case designed to house storage devices such as hard drives or optical drives.

Game Controller

A device used with games or entertainment systems to provide input to a video game, typically to control an object or character in the game.

Mouse

A hand-held pointing device used to control a cursor in a graphical user interface for interaction with text, icons, files, and folders on a computer.