The Own Price Elasticity of Demand for Apples Is −1

question 89

Multiple Choice

The own price elasticity of demand for apples is −1.5.If the price of apples falls by 6 percent,what will happen to the quantity of apples demanded?

• A) It will increase 4 percent.
• B) It will increase 9 percent.
• C) It will fall 4 percent.
• D) It will fall 6 percent.

---

Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales, including costs for raw materials and direct labor.

Mixing Machines

Equipment used in various industries such as food, pharmaceuticals, and chemicals to combine or blend different ingredients into a homogeneous mixture.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Variable Cost

Expenses that change in proportion with production output or business activity level.