If the Price of Pepsi-Cola Increases from 50 Cents to 60

question 30

Multiple Choice

If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for Pepsi-Cola is:​

• A)unit elastic.
• B)perfectly elastic.
• C)perfectly inelastic.
• D)elastic.
• E)inelastic.

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Definitions:

Bushels

A unit of volume that is used primarily in the United States to measure agricultural commodities, like grains and fruits.

Shortage

A situation in which the demand for a good or service exceeds its supply at a particular price.

Surplus

An excess of production or supply over demand, often leading to a decrease in prices.

Lower Labor Productivity

A condition where there is a decrease in the amount of goods or services produced per unit of labor.