If the Price Elasticity of Demand for Pineapples Is 0

question 38

Multiple Choice

If the price elasticity of demand for pineapples is 0.75, then a 4% increase in the price of pineapples will lead to a:

• A)3% decrease in the quantity of pineapples demanded.
• B)3% increase in the quantity of pineapples demanded.
• C)0.75% decrease in the quantity of pineapples demanded.
• D)0.75% increase in the quantity of pineapples demanded.

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Definitions:

Intuition

Gathering information through a “sixth sense” and focusing on what could be.

Analytic Thinking

The systematic examination of complex ideas, issues, or problems using logical reasoning and critical analysis to break them down into component parts.

Logical Reasoning

The process of using a structured, systematic approach to arrive at conclusions or solve problems based on valid premises.

What-if Questions

Hypothetical queries used to explore potential outcomes or scenarios, often in planning, problem-solving, and decision-making processes.