The Price Elasticity of Demand for a Certain Agricultural Product

question 24

Multiple Choice

The price elasticity of demand for a certain agricultural product is constant (over the relevant range of prices) and equal to -2.The supply elasticity for this product is constant and equal to 3.Originally the equilibrium price of this good was $45 per unit.Then it was discovered that consumption of this product was unhealthy.The quantity that would be demanded at any price fell by 100%.The percent change in the long-run equilibrium consumption of this good was

• A)-100%.
• B)-64%.
• C)-20%.
• D)-60%.
• E)There is not enough information to determine the answer.

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Definitions:

Armchairs

Comfortable, upholstered chairs with side supports for a person's arms.

Name Brand Value

The perceived value added to a product or service by its brand name, which can influence customer choice.

Mode of Transportation

Various means used for moving people or goods from one place to another, such as road, air, or sea.

Delivery Speed

The rate at which a company can fulfill customer orders from the point of order placement to delivery, directly impacting customer satisfaction.