Multiple Choice
A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities. In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore
A) lower in the smaller city as would be expected.
B) greater in the smaller city as would be expected.
C) certainly affected by population differences in different markets.
D) the same in Philadelphia as in Dover.
Correct Answer:

Verified
Correct Answer:
Verified
Q144: The income elasticity of demand is defined
Q145: The price elasticity of demand is always
Q146: Water is considered a necessity. So, is
Q147: Last year the price of corn was
Q148: Last year, Jack's income was $15,000 and
Q150: As time passes after a change in
Q151: A good with a vertical demand curve
Q152: As income rises, the share of income
Q153: The price of gasoline rises by 33
Q154: The price of a bus ride decreases,