When the Price of Kittens Was $25 Each,the Pet Shop

question 34

Multiple Choice

When the price of kittens was $25 each,the pet shop sold 20 per month.When they raised the price to $35 each,they sold 14 per month.The price elasticity of demand for kittens is about

• A)1.66.
• B)1.06.
• C)0.94.
• D)0.60.

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Definitions:

Income Increase

An income increase refers to a rise in the amount of earnings received by an individual or household, which can affect purchasing power and economic status.

Peanut Butter

Peanut Butter is a food paste or spread made from ground dry roasted peanuts, often containing additional ingredients that modify the taste or texture.

Decrease in Demand

A reduction in the quantity of a good or service that consumers are willing and able to purchase at various prices.

Drought in Georgia

A prolonged period of deficient rainfall resulting in water shortage in the state of Georgia.