Fred's Price Elasticity of Demand for Milk Is -2 at Today's

question 65

Multiple Choice

Fred's price elasticity of demand for milk is -2 at today's prices when we measure price in dollars and quantity of milk in quarts.If the price per quart of milk stays the same but we measure quantity of milk in gallons and price in dollars, then what will be the elasticity of demand for gallons of milk? (A gallon is four quarts.)

• A)-1
• B)-1/2
• C)-8
• D)-4
• E)-2

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Definitions:

Load Connected

Refers to an electrical component or device that is connected to a circuit and draws power from it.

Secondary

Refers to the output side of a transformer that receives energy from the primary winding and delivers it to the load.

Turns Ratio

The ratio of the number of turns in the primary winding to the number of turns in the secondary winding of a transformer, which determines the voltage transformation.

Turns

The number of windings in a coil or inductor, affecting its inductance and magnetic field strength.