The Price Elasticity of Demand for a Certain Agricultural Product

question 20

Multiple Choice

The price elasticity of demand for a certain agricultural product is constant (over the relevant range of prices) and equal to -1.50.The supply elasticity for this product is constant and equal to 4.Originally the equilibrium price of this good was $15 per unit.Then it was discovered that consumption of this product was unhealthy.The quantity that would be demanded at any price fell by 11%.The percent change in the long-run equilibrium consumption of this good was

• A)-11%.
• B)-8%.
• C)-2%.
• D)-12%.
• E)There is not enough information to determine the answer.

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Definitions:

Authoritative

A parenting style characterized by high demands and high responsiveness, where parents set clear standards for their children but also encourage independence and are open to communication.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and may only step in when necessary.

Influenced

Being influenced refers to having one's behavior, actions, or thoughts altered or directed by forces or opinions outside of oneself.

Authoritative Parents

A parenting style characterized by high responsiveness and high demands, balancing clear, strict guidelines with emotional support and recognition of independence.