The Figure Above Shows the Demand Curve for Starbucks Latte

question 271

Multiple Choice

The figure above shows the demand curve for Starbucks latte.
-In in the figure above,when the price rises from $3 to $4,the price elasticity of demand is

• A) 1.4.
• B) 2.
• C) 0.71.
• D) 0.4.
• E) 1.

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Definitions:

False Positive

An error in data testing in which a test result improperly indicates the presence of a condition (such as a disease when it is not present).

Expected Gain

The anticipated value or profit that results from a particular action or decision, often calculated in statistical or financial models.

False Negative

An error in test results in which a positive condition is incorrectly reported as negative.

Discrete Probability Distribution

A statistical distribution that shows the probabilities of outcomes with distinct values.