Multiple Choice
If the price elasticity of demand for grapes was 2.5,
A) the demand for grapes would be considered inelastic.
B) an increase in the price of grapes would decrease total consumer spending on grapes.
C) consumer purchases are less sensitive to a change in the price of grapes than to a change in the price of bananas, which have a price elasticity of 1.6.
D) the income elasticity for grapes must also be 2.5.
Correct Answer:
Verified
Correct Answer:
Verified
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