A Poultry Rancher Discovered That When She Increased the Price

question 210

Multiple Choice

A poultry rancher discovered that when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of her eggs fell from 300 dozen per week to 200 dozen per week. Her price elasticity of demand (using the midpoint method) would be

• A) 2.60.
• B) 1.40.
• C) 0.75.
• D) 1.00.

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Definitions:

Retirement

The period of a person's life when they choose to permanently leave the workforce behind, typically due to age or health.

SES (Socioeconomic Status)

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Life Span

The duration of time that an individual lives, from birth to death.

Socio-emotional Selectivity Theory

A theory proposing that as people age, they prioritize emotionally meaningful goals and interactions over the acquisition of new social contacts.