-The figure illustrates the demand for hamburgers. When the price is $1.00 a hamburger, the elasticity of demand is ________ and a 1 percent increase in the price will ________ the quantity of hamburgers demanded by ________ percent.
A) 1.00; decrease; 0.40
B) 0.40; decrease; 0.40
C) 2.50; increase; 2.50
D) 5.00; decrease; 5.00

Question

-The figure illustrates the demand for hamburgers. When the price is $1.00 a hamburger, the elasticity of demand is ________ and a 1 percent increase in the price will ________ the quantity of hamburgers demanded by ________ percent.
A) 1.00; decrease; 0.40 
B) 0.40; decrease; 0.40 
C) 2.50; increase; 2.50 
D) 5.00; decrease; 5.00

Quizplus · Accepted Answer

The elasticity of demand is 0.40, meaning it is inelastic. A 1 percent increase in price will decrease the quantity demanded by 0.40 percent.

-The Figure Illustrates the Demand for Hamburgers