The Figure Above Shows the Demand Curve for Starbucks Latte

question 17

Multiple Choice

The figure above shows the demand curve for Starbucks latte.
-In in the figure above,when the price falls from $5 to $4,the price elasticity of demand is

• A) 2.
• B) 3.
• C) 0.75.
• D) 1.5.
• E) 0.33.

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Definitions:

Mean Squared

A statistical measure of the average of the squares of the errors or deviations, that is, the difference between the estimator and what is estimated.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Spread Out

Describes data that is dispersed widely, showing a large variation among its values, often seen in distributions with high variance.

Inclusive Range

The difference between the highest and lowest values in a data set, considering all values within the set, including the extremes.