Fred's Price Elasticity of Demand for Milk Is -2 at Today's

question 65

Multiple Choice

Fred's price elasticity of demand for milk is -2 at today's prices when we measure price in dollars and quantity of milk in quarts.If the price per quart of milk stays the same but we measure quantity of milk in gallons and price in dollars, then what will be the elasticity of demand for gallons of milk? (A gallon is four quarts.)

• A)-1
• B)-1/2
• C)-8
• D)-4
• E)-2

Identify and develop personal financial goals and understand the financial planning process.

Understand the components and importance of financial planning.

Recognize the steps in the financial planning process and their significance.

Identify and assess various types of financial risks and how they impact financial decisions.

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