Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital In The Twenty-First Century

Authors: Thomas Piketty, Arthur Goldhammer

1st Edition

067443000X, 9780674430006

Students also viewed these Economics questions

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago

Question

Has your organisation defined its purpose, vision and mission?

Answered: 1 week ago