When the Price of Chai Tea Lattés Is $5,Maxine Buys

question 144

Multiple Choice

When the price of chai tea lattés is $5,Maxine buys 20 per month.When the price is $4,she buys 30 per month.Maxine's demand for chai tea lattés is

• A)elastic,and her demand curve would be relatively flat.
• B)elastic,and her demand curve would be relatively steep.
• C)inelastic,and her demand curve would be relatively flat.
• D)inelastic,and her demand curve would be relatively steep.

---

Definitions:

Futures Contract

An official agreement setting terms for the future buying or selling of assets at a price fixed in advance.

Value

The financial worth of an asset, security, or company, based on factors like earnings, growth potential, and market conditions.

Calls

Options contracts that give the holder the right, but not the obligation, to buy a stock or another financial asset at a specified price within a specific time period.

Gold

A precious yellow metallic element, highly valued for use in jewelry and as an investment.