In the Village of Frankfurter, the Demand Function for Sausages

question 72

Multiple Choice

In the village of Frankfurter, the demand function for sausages per person is D(p) = 20 - 1.5p, where p is the price of a single sausage.The present population of Frankfurter is 100 persons.Suppose that 10 more people move into town, each of whom has the same demand function as the old residents.At a price of $2, the price elasticity of demand for sausages in Frankfurter is

• A)increased by 10%.
• B)decreased by 10%.
• C)unchanged.
• D)increased by 15%.
• E)none of the above.

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Definitions:

Habitat

Type of environment in which a species typically lives.

Community

A group of interacting organisms sharing an environment, often considered within the context of ecological studies of how various species relate to each other within a shared space.

Niche

The role or function of an organism or species within an ecosystem, including its habitat, resource use, and contributions to its community.

Ecosystem

An ecosystem is a community of living organisms in conjunction with the nonliving components of their environment, interacting as a system.