Americans Consume 126 Grams of Sugar Per Day

question 7

Multiple Choice

Americans consume 126 grams of sugar per day. Suppose that a sugar tax raises the retail price of sugar from US$2.79 to US$3.39 per pound, and reduces consumption to 120 grams per day. What is the own-price elasticity of demand?

• A) -0.23.
• B) -0.05.
• C) -0.215.
• D) -43.

---

Definitions:

Target Markets

Specific groups of potential customers at which a company directs its marketing efforts and product offerings.

Cross Product Marketers

Marketers who strategize to promote and sell complementary or related products to customers.

Electronic Commerce

The buying and selling of goods and services through the internet or other electronic systems.

Www.Amazon.Com

An online marketplace known for facilitating the buying and selling of a wide variety of goods and services.