- #1
danny-saf
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1.When the price of popsicles rose from $10 to $11, consumer expenditures on them dropped by 10%, indicating that:
A. Demand for popsicles had a price elasticity of -1
B. Demand for popsicles was price-elastic
C. Popsicles are a normal good
D. Popsicles are an inferior good
E. More than one answer is correct
2. (5 points) At a price of $10, Jane would buy 8 CDs. At a price of $12, Jane would buy 6 CDs. Her price elasticity of demand would then be:
A. -1/2
B. -11/7
C. -5/4
D. -5/8
E. -4/5
Explain!
A. Demand for popsicles had a price elasticity of -1
B. Demand for popsicles was price-elastic
C. Popsicles are a normal good
D. Popsicles are an inferior good
E. More than one answer is correct
2. (5 points) At a price of $10, Jane would buy 8 CDs. At a price of $12, Jane would buy 6 CDs. Her price elasticity of demand would then be:
A. -1/2
B. -11/7
C. -5/4
D. -5/8
E. -4/5
Explain!