Author Question: When the price of milk is 3 per bottle, Steve purchases 20 bottles of milk. When the price increases ... (Read 69 times)

appyboo · **on:** Jun 29, 2018

When the price of milk is 3 per bottle, Steve purchases 20 bottles of milk. When the price increases to 6, Steve's consumption falls to 15 bottles. Steve's arc elasticity of demand for milk is:

A) -0.25.
B) -0.43.
C) -0.50.
D) -0.75.

Question 2

________ are the portion of claims that policyholders must pay for out of their own pockets.

A) Dividends
B) Tokens
C) Coupons
D) Deductibles