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:

Response Prevention

A therapeutic technique in behavioral therapy aimed at reducing the occurrence of unwanted behaviors by preventing the individual from performing their usual response to a trigger.

Obsessed

The condition of being preoccupied or filled with persistent thoughts, ideas, or feelings about someone or something, often in a way that seems involuntary.

Cleanliness

The state or quality of being clean and free from dirt, or the process of achieving and maintaining that state.

Aversion Conditioning

A method of behavioral therapy that involves associating a negative reaction with a particular stimulus in order to reduce or eliminate undesirable behavior.