Suppose that a local supermarket sells apples and oranges for 50 cents apiece,and at these prices is able to sell 100 apples and 200 oranges per week.One week,the supermarket lowered the price per apple to 40 cents and sold 120 apples.The next week,they lowered the price per orange to 40 cents (after raising the price per apple back to 50 cents) and sold 240 oranges.These results imply that the
A) price elasticity of apples is lower than the price elasticity of oranges
B) price elasticity of apples is higher than the price elasticity of oranges
C) demand for apples is more price sensitive than the demand for oranges
D) demand for oranges is more price sensitive than the demand for apples
E) price elasticities of demand for apples and oranges are the same over these price ranges
Correct Answer:
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Q4: The price elasticity of demand is
A)irrelevant to
Q5: In measuring the sensitivity of demand,the
A)price and
Q6: If the price of a good increases
Q7: The sensitivity of one economic variable to
Q8: The price elasticity of demand is important
Q10: If a 10 percent rise in the
Q11: If the price elasticity of demand for
Q12: The price elasticity of demand is the
A)percentage
Q13: If a 20 percent decrease in the
Q14:
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