Author Question: Tara buys four music cassettes when the price is 10 and two cassettes when the price is 14 . Her ... (Read 45 times)

Alygatorr01285 · **on:** Jun 30, 2018

Tara buys four music cassettes when the price is 10 and two cassettes when the price is 14 . Her price elasticity of demand is:
a. 0.
b. 1.
c. 2.
d. 3.
e. 4.

Question 2

Leo's Bakery reduces the price of wheat bread from 3 to 1 and finds that quantity demanded increases from 100 to 122 loaves. Leo calculates that his price elasticity of demand for wheat bread is:
a. 0.
b. 0.2.
c. 1.0.
d. 1.5.
e. 2.0