Rock melon has a price of elasticity of demand of (-)2.95, it can be concluded that the demand for rock melons is ___________.

Question

BlackTom AI · Accepted Answer

Question restatement: Rock melon has a price elasticity of demand of (-)2.95, it can be concluded that the demand for rock melons is ___________.

Option 1: 'relatively elastic' — This is correct in the sense that the absolute value of price elasticity of demand is 2.95, which is greater than 1. An elasticity with |Ed| > 1 means the quantity demanded responds more than proportionately to price changes, i.e., elastic demand. The negative sign indicates the inverse price-quantity relationship, but the magnitude (2.95) indicates elasticity.

Option 2: 'highly inelastic' — This is incorrect because inelastic demand would have |Ed| < 1. A value of 2.95 is far from inelastic; it shows a strong responsiveness to price.

Option 3: 'relatively inelastic' — This is also incorrect for the same reason; relative insensitivity (|Ed| < 1) does not apply when the magnitude is 2.95.

Option 4: 'perfectly elastic' — This is incorrect because perfectly elastic demand implies an infinite elasticity, meaning any price change leads to a limitless change in quantity demanded. A finite value of 2.95 does not meet that criterion.

Rock melon has a price of elasticity of demand of (-)2.95, it can be concluded that the demand for rock melons is ___________.单项选择题

类似问题

When there are many substitute products available, the price elasticity of demand for a given product will likely be Blank ______.

When a 10 percent decrease in price results in a less than 10 percent increase in quantity sold, the demand for the product or service is described as Blank ______.

If the absolute value of the price elasticity of demand for good X is 0.5, then a 10% decrease in the price of good X will result in which of the following?

The own-price elasticity of Starbucks coffee is -0.8, meaning __.

There are many different factors that impact the price elasticity of demand. More specifically, the proportion of budget and the income effect refer to how price as a portion of income influences price elasticity. Which of the following is true

The discovery of a new hybrid wheat would tend to increase the supply of wheat. Under what conditions would wheat farmers realise an increase in revenue?

Shoes are priced at $75 per pair. A vendor sells 20 pairs per day. The vendor explores selling at $100 per pair. At that price, the vendor sells 15 pairs over the day. What is the elasticity of shoe sales to price.

A luxury handbag brand raises prices by 10% but experiences only a 2% drop in volume. Demand is:

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单