Suppose That in a Month the Price of Milk Increases

question 33

Multiple Choice

Suppose that in a month the price of milk increases from $2 to $3 a gallon. At the same time, the quantity of gallons of milk demanded decreases from 200 to 190. The price elasticity of demand for milk (calculated using the initial value formula) is

• A) 0.1.
• B) 0.2.
• C) 1.
• D) 10.

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Definitions:

Quartz

A hard, crystalline mineral composed of silicon dioxide, commonly found in many types of rocks and used in various industrial applications.

Sedimentary Rock

Rock formed from the accumulation of sediment, which can be transported by water, wind, or ice, and often contains fossils.

Burial

In geology, this refers to the process of layering sediments on top of each other, which can lead to the formation of sedimentary rocks or the fossilization of organisms.

Compaction

Process by which soil, sediment, and volcanic materials lose pore space in response to the weight of overlying material.