When the Price of a Pound of Apples Is $1

question 245

Multiple Choice

When the price of a pound of apples is $1.00, 7500 pounds of apples are demanded. When the price of a pound of apples decreases to $0.80, 10,000 pounds of apples are demanded. In this price range the demand for apples is

• A) elastic.
• B) inelastic.
• C) unit elastic.
• D) perfectly elastic.

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Definitions:

Predict

The act of forecasting future events or conditions based on current knowledge or past experiences.

Describe

The act of giving a detailed account or picture of something in words, including all relevant characteristics, qualities, or events.

Explain

To make something clear or easy to understand by describing or giving information about it.

Behavioral School

A perspective in psychology focusing on observable behaviors and the ways in which learning influences behavior, discounting internal mental processes.