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:

PYY

A hormone involved in appetite regulation, produced in the gut in response to eating.

Leptin

A hormone produced by fat cells that helps to regulate body weight by inhibiting hunger, thus acting as an appetite suppressant.

Stomach Contractions

Involuntary movements of the stomach muscles, often associated with hunger or digestion processes.

Walter Cannon

A physiologist known for his work on the fight or flight response and the concept of homeostasis in the human body.