Soru
Which of the following statements describes an elasticiclasmiclbe almet alesrts atesesric ate demand? A. I can't afford as many books because my income has fallen. B. Tom's demand for apples does not change when the price of bananas rises. C. Mary's quantity demanded of milk decreased by 8 percent when the price of milk rose by 5 percent. D. A fall in Ralph's income by 5 percent changes his demand for chocolates by 1 percent.
Çözüm
4.1
(213 Oylar)
Rengin
Profesyonel · 6 yıl öğretmeni
Uzman doğrulaması
Cevap
The correct answer is 'C'.
Daha Fazla
## Step 1The problem is asking us to identify which of the given options describes an elastic demand. In economics, elastic demand refers to a situation where the quantity demanded of a good or service is highly responsive to changes in its price. This means that a small change in price will result in a significant change in the quantity demanded.## Step 2Let's analyze each option:### Option A: This option is about income elasticity of demand, not price elasticity. The individual's demand for books is changing due to a change in income, not price.### Option B: This option is about cross-price elasticity of demand, not price elasticity. The demand for apples is not changing due to a change in the price of bananas.### Option C: This option is about price elasticity of demand. The quantity demanded of milk is decreasing by 8% when the price of milk rises5%. This is a clear example of elastic demand, as the percentage change in quantity demanded is greater than the percentage change in price.### Option D: This option is about income elasticity of demand, not price elasticity. The demand for chocolates is changing due to a change in income, not price.