Author Question: Specialty chocolate bars with a high cocoa content have been drawing a lot of attention in gourmet ... (Read 144 times)

evelyn o bentley · **on:** Jun 29, 2018

Specialty chocolate bars with a high cocoa content have been drawing a lot of attention in gourmet circles in 2008 but the price of cocoa beans has increased more than 44 percent in this time period.

In response to the increase in the price of cocoa beans, Rogue Chocolatier has increased the price of their gourmet chocolate bars by 20 percent. Rogue observes the quantity of their bars sold decreased by 15 percent. Based on this news clip, what does the price elasticity of demand for gourmet chocolate bars equal? A) 0.75
B) 1.25
C) 1
D) 0.66

Question 2

The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What is the quantity produced if the market for paper is unregulated?

A) 10 tons per week
B) 60 tons per week
C) 40 tons per week
D) 30 tons per week