Question
Hello, i'm currently doing exercice on economics and I struggle for one question: From a recently taken consumer survey regarding the demand for exotic fruit,
Hello, i'm currently doing exercice on economics and I struggle for one question:
From a recently taken consumer survey regarding the demand for exotic fruit,
you obtain that at the current price of $3 per unit and a typical quantity of 10 units consumed,
price elasticity of demand (in absolute value) is 0.8.
Suppose now the price of exotic fruit increases by 10%.
Based on this information which of the following statements is correct?
Select one or more:
a.The demand for exotic fruit will increase by 8%
b.The consumer's expenditure on exotic fruit after the price change is $ 30.36.
c.The quantity consumed by the consumer after the price change is approximately 10.8 units
d.The quantity consumed by the consumer after the price change is approximately 9.2 units
For me the answer D only makes sense... Am i right?
thanks very much
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