If the Price of Apples Decreases by 2 Percent and Causes

question 57

Multiple Choice

If the price of apples decreases by 2 percent and causes apple consumption to increase by 4 percent, the price elasticity of demand is ____, indicating the demand is ____.

• A) 2; elastic
• B) 2; inelastic
• C) 0.5; elastic
• D) 0.5; inelastic

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Definitions:

Asynchronous Interaction

Communication where responses do not occur in real-time, allowing participants to engage according to their own schedule.

Utilitarian Consumption

involves buying and using products based on their practical functionality and utility, rather than for pleasure or aesthetic reasons.

B2B Commerce

Business-to-business commerce involving transactions between companies rather than between a company and individual consumers.

M2M

Machine-to-Machine communication, referring to direct communication between devices using any communications channel, including wired and wireless.