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:

Reticular Formation

A network of neurons located in the brainstem that plays a key role in controlling arousal and alertness.

Midbrain

A central part of the brainstem that plays an important role in visual and auditory processing and motor control.

Hindbrain

The posterior portion of the brain that includes structures such as the cerebellum, pons, and medulla oblongata, responsible for regulating basic life functions like breathing, heart rate, and balance.

Cerebellum

A part of the brain at the back of the skull in vertebrates, responsible for coordinating and regulating voluntary movements.