Suppose the Price of Take-Out Pizza Has Been Stable for Many

question 16

Multiple Choice

Suppose the price of take-out pizza has been stable for many months at exactly $12.50 per pizza - and Olivier buys 6 pizzas per month at this price.When the price rises to $12.55 per pizza,Olivier's quantity demanded drops to zero.Apparently,Olivier's price elasticity of demand for take-out pizza is

• A)-1.
• B)0.
• C)100
• D)6.
• E)higher than 10 000.

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Definitions:

Earned-Income Tax Credits

A refundable tax credit for low- to moderate-income working individuals and families, particularly those with children, aimed at reducing poverty and encouraging work.

Unequal Distribution Of Income

A situation where income is not distributed evenly among the population, leading to disparities in wealth and living standards.

Differences In Work Preferences

Differences in work preferences refer to the variation among individuals in terms of the type of work, work environment, hours, and conditions they find most satisfying or acceptable.

Income Distribution

Refers to the way in which total income is shared among the population or different groups within a society.