23) Suppose we know that the price elasticity of demand for organic apples is -1.2. If a grocer increases the price of organic apples by 18%, what would we expect to happen to the quantity of organic apples purchased?
a) Decrease by 1.2%
b) Decrease by 12%
0) Decrease by 1.8%
d) Decrease by 18%
e) Decrease by 2.4 %
24) Suppose we know that the price elasticity of demand for sandals 1s-1.6. A shoe stores normally sells 100 pairs of sandals each month. If it decides to raise the price of its sandals by 30%, how many sandals would it then sell per month?
a) 118. b) 88
0) 70
26)
d) 60 e) 85
If a increase in the price of apples from $1 to $2 per pair leads to an decrease in the quantity of apples demanded from 180 million to 100 million kg, then applying the midpoint formula, the price elastietty of demand equals:
a) -4/10
b) -8/10
0) -2/3
20)
d) 3/2
e) 4/3
Suppose we observe that the revenue a music store receives from CD sales Increases when the price of CDs is decreased. What can we conclude
a) The price elasticity of demand for CDs is zero.
b) The demand for CDs is perfectly inelastic.
o) The price elasticity of demand for CDs is-1.
d) The price elasticity of demand for CDs is greater than-1.
e) The price elasticity of demand for CDs is less than-1.