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) inelastic demand.
C) unit elastic demand.
D) perfectly elastic demand.
Answer: B
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Which of the following is an argument for globalization?
a. Poor countries compete for multinational firms by allowing lax environmental standards. b. Multinational firms tend to pay lower wages than local firms. c. The benefits of globalization to all consumers greatly outweigh the loss of jobs to international competition. d. Removal of restrictions against agricultural products would cause workers in rich countries to lose their jobs. e. The increased integration of the world's economies has been associated with lax environmental and labor standards in most countries.
Most of the taxes collected by governments tend to
a. remain fixed. b. move in the opposite direction from GDP. c. be sales taxes. d. rise and fall with the level of GDP.
Over the past 100 years, as the U.S. economy's income has grown,
a. tax rates have decreased, while tax revenues have increased. b. tax rates have increased, while tax revenues have decreased. c. both tax rates and tax revenues have increased. d. both tax rates and tax revenues have decreased.
Which of the following is the most costly program for the poor?
A. SNAP (Food Stamps) B. Medicaid C. AFDC/TANF D. WIC