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31) A local pizzeria raised its price from $9 to

Question : 31) A local pizzeria raised its price from $9 to : 1844672

31) A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case?

A) 1/2

B) -2

C) -1/2

D) 2

32) Using the average price and average quantity, what is the elasticity of demand for oranges when the price of oranges changes from $200 to $160 per bushel and so the quantity demanded changes from 1000 to 1400 bushels?

A) 1.5

B) 0.1

C) 10.0

D) 0.67

33) If the price of a soda increases from 75¢ to $1.00 and as a result the quantity demanded of sodas decreases from 10 to 9 per week, the elasticity of demand for sodas equals

A) 2.72.

B) 0.37.

C) 0.83.

D) 1.20.

34) When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to

A) 3.

B) 3/7 or 0.4286.

C) 1/3 or 0.3333.

D) 1/4 or 0.25.

35) Florida State University has just lowered the price of its season football tickets from $350.00 to $300.00. As a result, there was an increase in the number of season tickets purchased from 43,000 to 47,000. The price elasticity of demand for season tickets equals

A) 1.71.

B) 1.58.

C) 0.71.

D) 0.58.

36) Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is

A) 0.5.

B) 0.75.

C) 1.33.

D) 2.00.

37) A fall in the price of lemons from $10.50 to $9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand is

A) 0.80.

B) 1.20.

C) 1.25.

D) 8.00.

38) Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels. Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.)

A) 1

B) 0.47

C) 2.14

D) 0.29

39) A fall in the price of cabbage from $10.50 to $9.50 per bushel increases the quantity demanded from 18,800 to 21,200 bushels. The price elasticity of demand is

A) 0.80.

B) 1.20.

C) 1.25.

D) 8.00.

40) Suppose that the quantity of root beer demanded declines from 103,000 gallons per week to 97,000 gallons per week as a consequence of a 10 percent increase in the price of root beer. The price elasticity of demand is

A) 0.60.

B) 1.40.

C) 1.66.

D) 6.00.

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