The Figure Above Shows the Demand Curve for Starbucks Latte

question 21

Multiple Choice

The figure above shows the demand curve for Starbucks latte.
-In the figure above,the demand is unit elastic

• A) at the point where the price is $3.00 per cup.
• B) at the point where the price is $2.00 per cup.
• C) at the point where the price is $4.00 per cup.
• D) at the point where the price is $2.50 per cup.
• E) at all points along the demand curve.

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes relative to a change in consumers' income.

Housing Property

Real estate that includes residential homes such as single-family houses, apartments, and condos, used for living purposes.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Demand Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.