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:

Socioeconomic Index

A composite measure that typically combines data on income, education, and occupation to characterize or rank individuals or groups' economic and social position.

Occupational Prestige

The perceived status or respect associated with various professions by society, often influenced by factors like education, income, and perceived impact.

Income

The financial gain obtained from work, investments, business, or other sources, typically measured over a certain period.

Single Generation

A reference to individuals born and living in the same time period, sharing similar age-related cultural experiences and characteristics.