Assume That When the Price of Cantaloupes Is $2

question 2

Multiple Choice

Assume that when the price of cantaloupes is $2.50, the demand for cantaloupes is unit-elastic and the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of cantaloupes to $2.00, which of the following statements can be made regarding the price elasticity of demand for cantaloupes?

• A) The demand for cantaloupes at $2.00 must be inelastic.
• B) We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.
• C) The demand for cantaloupes at $2.00 must be elastic.
• D) The demand for cantaloupes at $2.00 must be unit-elastic.

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Definitions:

Schaie's Model

A developmental model that outlines the stages of cognitive development in adults, emphasizing life-span changes.

Post-formal

A stage of cognitive development succeeding Piaget's formal operational stage, characterized by the understanding that truth may vary from situation to situation and logic can be influenced by emotion.

Adult Stage

A phase in human development that follows adolescence and is characterized by full physical maturity and the assumption of roles related to employment, parenthood, or societal contributions.

Mature

Having reached full physical or mental development; showing qualities such as wisdom and responsibility that come with adulthood.