Assume That When the Price of Cantaloupes Is $2

question 269

Multiple Choice

Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping.If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes?

• A)The demand for cantaloupes at $2.00 must be inelastic.
• B)We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.
• C)The demand for cantaloupes at $2.00 must be elastic.
• D)The demand for cantaloupes at $2.00 must be unit elastic.

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Definitions:

Sealed Auction

An auction format in which all bids are submitted simultaneously in sealed envelopes, and the highest bid wins without bidders knowing the bid amounts of others.

Oral Auction

In this auction type, bidders submit increasing bids until only one bidder remains. The item is awarded to the last remaining bidder.

Oral Auction

An auction conducted by an auctioneer who calls out prices of items for which participants physically present place bids verbally.

Expected Selling Price

The price at which a seller anticipates being able to sell a product or service.