Figure 7.4
-Figure 7.4 shows prices, demands, and cost data for the only restaurant in a small town. Which group's demand for meals is more price-elastic?
A) the senior customers
B) the non-senior customers
C) the two groups are equally sensitive to a change in price
D) There is not sufficient information.

Question

Figure 7.4
-Figure 7.4 shows prices, demands, and cost data for the only restaurant in a small town. Which group's demand for meals is more price-elastic?
A) the senior customers 
B) the non-senior customers 
C) the two groups are equally sensitive to a change in price 
D) There is not sufficient information.

Quizplus · Accepted Answer

The senior customers' demand is more price-elastic because their demand decreases more than the non-senior customers' demand when the price increases.

Figure 7.4 -Figure 7.4 Shows Prices, Demands, and Cost Data for the for the Only