The Table Below Shows the Demand Schedule for Museum Admissions

question 107

Multiple Choice

The table below shows the demand schedule for museum admissions in a small city.
TABLE 4-1
-Refer to Table 4-1.Between the prices of $8 and $10,the elasticity of demand is

• A)1/3.
• B)2/3.
• C)1.
• D)2.
• E)3.

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Definitions:

Economic Efficiency

A state in which resources are allocated in a way that maximizes the total benefit received by society from those resources.

Consumer Surplus

The divergence between the price consumers are willing to pay and what they really spend on a good or service.

Floor Price

The minimum price set by regulation, often by the government, below which a commodity cannot legally be sold in the market.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at a given time and price.