When the price of coffee is $2.2 per cup, 11 million cups are demanded, and when the price of coffee goes up to $2.6 per cup, 10 billion cups are demanded. The coffee in this range has a(n)
A. elastic demand.
B. unit elastic demand.
C. perfectly elastic demand.
D. inelastic demand.
Answer: D
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What is the most important factor that explains differences in living standards among countries?
a. labor unions b. minimum wage laws c. productivity d. efficiency
Which of the following will cause the consumption schedule to shift upward?
a) an increase in the amount of consumer indebtedness b) a reduction in the wealth or assets held by consumers c) an expectation in future declines in the consumer price index d) an expectation of future shortages of essential consumer goods e) a growing belief that personal income will decline in the future
According to the text, critics point out that the costs incurred by firms due to regulations
A. lower production costs to the shutdown point. B. reduce taxes too far. C. increase production costs. D. none of these.
In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. In the market for citrus fruit in 2004
A) the supply curve shifted to the right resulting in an increase in the equilibrium price. B) the supply curve shifted to the left resulting in an increase in the equilibrium price. C) the demand curve shifted to the right resulting in an increase in the equilibrium price. D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.