14. The price elasticity of demand for craft beer is estimated to be -1.4. The price of beer increases by 2 percent. What happens to the quantity demanded? ن فرن a. Quantity demanded falls by 2.8 percent b. Quantity demanded rises by 2.8 percent There is not enough information to determine the answer. d. Quantity demanded is unaffected by price and therefore does not change.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
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Chapter5: Elasticity
Section: Chapter Questions
Problem 28CTQ: Would you expect supply to play a more significant role in determining the price of a basic...
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14. The price elasticity of demand for craft beer is
estimated to be -1.4. The price of beer increases by 2
percent. What happens to the quantity demanded?
ن فرن
a. Quantity demanded falls by 2.8 percent
b. Quantity demanded rises by 2.8 percent
There is not enough information to
determine the answer.
d. Quantity demanded is unaffected by price
and therefore does not change.
Transcribed Image Text:14. The price elasticity of demand for craft beer is estimated to be -1.4. The price of beer increases by 2 percent. What happens to the quantity demanded? ن فرن a. Quantity demanded falls by 2.8 percent b. Quantity demanded rises by 2.8 percent There is not enough information to determine the answer. d. Quantity demanded is unaffected by price and therefore does not change.
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