Suppose That 300 Bottles of Soda Are Demanded at a Particular

question 151

Multiple Choice

Suppose that 300 bottles of soda are demanded at a particular price.If the price of a bottle of soda rises from that price by 6 percent,the number of bottles of soda demanded falls to 275.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A)demand for bottles of soda in this price range is perfectly elastic.
• B)price increase will increase the total revenue of soda sellers.
• C)price elasticity of demand for bottles of soda in this price range is about 0.69.
• D)price elasticity of demand for bottles of soda in this price range is about 1.45.

---

Definitions:

Self-Reliant

Capable of relying on one's own capabilities, judgment, or resources; independent.

African American

A term referring to American citizens or residents of African descent, with a history and culture that have significantly shaped the United States.

Independent

Characterized by autonomy and self-sufficiency, not influenced or controlled by others in matters of opinion, conduct, or dependence.

Verbal Appellation

The act of naming or labeling something or someone using spoken words.