Studies Indicate That the Price Elasticity of Demand for Beer

question 120

Multiple Choice

Studies indicate that the price elasticity of demand for beer is about 0.9.A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20.According to the midpoint method,the government policy should have reduced beer consumption by

• A)30%.
• B)40%.
• C)60%.
• D)74%.

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Definitions:

Anorexia Nervosa

An eating disorder characterized by fear of being fat, a distorted body image, radically reduced consumption of food, and emaciation.

Forced Vomiting

An act of deliberately inducing vomiting, often associated with eating disorders.

Leptin-Deficient

Lacking sufficient levels of leptin, a hormone that regulates energy balance by inhibiting hunger, which can lead to obesity.

Lose Weight

The process of reducing body mass, typically through diet, exercise, or a combination of both.