If the Price of Orange Juice Rises 10%,and as a Result

question 85

Multiple Choice

If the price of orange juice rises 10%,and as a result the quantity demanded falls by 8%,the price elasticity of demand for orange juice is

• A) -1.25.
• B) inelastic.
• C) Both A and B above.
• D) Neither A nor B above.

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Definitions:

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to the level of satisfaction or utility they provide.

Auto Repairs

Services aimed at fixing or maintaining the functional aspects of vehicles, ensuring they are safe and operational.

Gasoline

A liquid fuel made from petroleum and used primarily to power internal combustion engines.