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​Figure 53

question 77

Multiple Choice

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. ​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.   -If a 50 percent increase in the price of pizza results in a 25 percent decrease in the quantity demanded of pizza, then the price elasticity of demand for pizza: A) is equal to 0.5 and demand for pizza is inelastic. B) is equal to 0.5 and demand for pizza is elastic. C) is equal to 2 and demand for pizza is elastic. D) is equal to 2 and demand for pizza is inelastic. E) cannot be determined from the information provided.
-If a 50 percent increase in the price of pizza results in a 25 percent decrease in the quantity demanded of pizza, then the price elasticity of demand for pizza:


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