5.17. explain. **5.17. Ice cream.**Over the past years, the price of ice cream has varied between $3 and $6 per pound. Lisa’s weekly expenditure on ice cream is higher in weeks when the price is lower. What can you say about Lisa’s price elasticity of demand for ice cream?---This scenario illustrates the concept of price elasticity of demand. Lisa's behavior indicates that her demand for ice cream is elastic. As the price decreases, she buys significantly more ice cream, leading to increased total expenditure. This means she is responsive to price changes, purchasing much more when prices are low.

The price of the ice cream is varying from one period to another. The price range is $3 to $6, which…

5.17. Ice cream. Over the past years, the price of ice cream has varied between $3 and $6 per pound. Lisa's weekly expenditure on ice cream is higher in weeks when the price is lower. What can you say about Lisa's price elasticity of demand for ice cream?

5.17. Ice cream. Over the past years, the price of ice cream has varied between $3 and $6 per pound. Lisa's weekly expenditure on ice cream is higher in weeks when the price is lower. What can you say about Lisa's price elasticity of demand for ice cream?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.17. explain.

**5.17. Ice cream.**

Over the past years, the price of ice cream has varied between $3 and $6 per pound. Lisa’s weekly expenditure on ice cream is higher in weeks when the price is lower. What can you say about Lisa’s price elasticity of demand for ice cream?

---

This scenario illustrates the concept of price elasticity of demand. Lisa's behavior indicates that her demand for ice cream is elastic. As the price decreases, she buys significantly more ice cream, leading to increased total expenditure. This means she is responsive to price changes, purchasing much more when prices are low.

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