Suppose that in a month the price of a dozen of eggs increases from $1.50 to $2. At the same time, the quantity of dozens of eggs demanded decreases from 200 to 150. The price elasticity of demand for dozens of eggs is:

A. perfectly inelastic.
B. inelastic.
C. unit elastic.
D. elastic.


Answer: C

Economics

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What will be an ideal response?

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Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is:

A. greater than $4.50 but no more than $5.00. B. at least $5.00. C. $4.50. D. $5.00.

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Which of the following shifts the demand curve for hot dogs leftward?

A) an increase in the price of a hot dog bun B) a decrease in the price of a hot dog bun C) an increase in the price of a hot dog D) an increase in the price of a hamburger

Economics