The price of coffee rose 40 percent and the quantity of coffee demanded fell by 20 percent. The quantity of doughnuts demanded also fell by 20 percent. From this information, we can conclude that
A) the demand for coffee is elastic.
B) the demand for coffee is unit elastic.
C) coffee is an inferior good.
D) the cross elasticity demand between coffee and doughnuts is -0.5.
E) the income elasticity of demand for coffee is 2.
D
You might also like to view...
Unions can be thought of as constituting
a. a monopoly element in the supply of labor. b. a monopoly element in the demand for labor. c. an oligopoly element in the supply of labor. d. a competitive element in the demand for labor.
A devastating war that kills people and destroys buildings will:
What will be an ideal response?
An important factor in stock prices that is separate from interest rates and profit expectations is
A. Securities and Exchange Commission mandates on stock prices. B. the expected price of the stock in the near future. C. Board of Directors' mandates on stock prices. D. CEO desires.
Credit card balances are not considered to be money primarily because they
A. are not part of people's wealth. B. are an asset used in making transactions. C. are rarely used to make purchases. D. do not represent an obligation to pay someone else.