Suppose the Good Food supermarket increases the price of a pound of bananas from $.75 to $1.25 and finds that the quantity of bananas it sells per month drops from 1,500 to 1,000. The price elasticity of demand coefficient for bananas in this price range is:
A) 0.80.
B) 3.00.
C) 2.00.
D) 0.50.

Question

Quizplus · Accepted Answer

The Answer of Suppose the Good Food supermarket increases the price of a pound of bananas from $.75 to $1.25 and finds that the quantity of bananas it sells per month drops from 1,500 to 1,000. The price elasticity of demand coefficient for bananas in this price range is:
A) 0.80.
B) 3.00.
C) 2.00.
D) 0.50.

Suppose the Good Food Supermarket Increases the Price of a Pound