Suppose the Good Food supermarket increases the price of a pound ...

[maegan_martin]

Suppose the Good Food supermarket increases the price of a pound of bananas from .75 to 1.25 and finds that the quantity of bananas it sells per month drops from 1,500 to 1,000 . The price elasticity of demand coefficient for bananas in this price range is:
 a. 0.80 b. 3.00.
  c. 2.00 d. 0.50.

Question 2

Suppose the quantity demanded of steak is 200 million pounds per year when the price is 6 per pound and 400 million pounds per year when the price is 2 per pound. The price elasticity of demand for steak over this range is:
 a. elastic.
  b. inelastic.
  c. unitary elastic.
  d. perfectly elastic.
  e. perfectly inelastic.

[stanleka1]

Answer to Question 1

a

Answer to Question 2

b

[maegan_martin]

Thank you

[stanleka1]

No problemo