D. Alarge number of youngsters buy roses from Colombian rose-growers before Valentine's Day The demand for plums is unit elastic if __ A. a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded B. the price of plums does not change after a drought C. any increase in the price of plums results in a 1 percent decrease in the quantity of plums demanded D. my demand for plums increases when the price of apples falls Which of the following statements describes an inelastic demand? A. Arise in the tax rate has decreased imports of auto parts from China B. People are buying HDTVs before the Super Bowl game begins C. Housing prices in London rose by 10 percent due to rock bottom interest rates D. Megan did not buy too many hockey tickets even though their price dropped by 10 percent Which of the following statements is an example of perfectly elastic demand? A. Sherry is overwhelmed with buyers of her peaches when she lowers their price by a penny a pound compared to other sellers in the farmers' market. B. The price elasticity of demand for bottled water in Ohio is 1.5 while in Illinois it is 0.96 C. A10 percent rise in Rita's income decreases supply of canned fish by 5 percent D. Ahigh incidence of diabetes has resulted in a large increase in demand for insulin

1. The demand for plums is unit elastic if __<br />A. a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded<br /><br />Explanation: Unit elastic demand means that the percentage change in quantity demanded is exactly equal to the percentage change in price. Option A fits this definition as a 5 percent rise in price leads to a 5 percent decrease in quantity demanded.<br /><br />2. Which of the following statements describes an inelastic demand?<br />A. A rise in the tax rate has decreased imports of auto parts from China.<br /><br />Explanation: Inelastic demand means that the quantity demanded does not change significantly with a change in price. Option A describes a situation where the demand for auto parts from China decreases due to a rise in tax rate, indicating inelastic demand.<br /><br />3. Which of the following statements is an example of perfectly elastic demand?<br />A. Sherry is overwhelmed with buyers of her peaches when she lowers their price by a penny a pound compared to other sellers in the farmers' market.<br /><br />Explanation: Perfectly elastic demand means that any small change in price leads to an infinite change in quantity demanded. Option A describes a situation where Sherry's peaches are in high demand due to a slight price reduction, indicating perfectly elastic demand.