Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes? O The demand for cantaloupes at $2.00 must be inelastic. We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price. O The demand for cantaloupes at $2.00 must be elastic. O The demand for cantaloupes at $2.00 must be unit-elastic.
Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes? O The demand for cantaloupes at $2.00 must be inelastic. We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price. O The demand for cantaloupes at $2.00 must be elastic. O The demand for cantaloupes at $2.00 must be unit-elastic.
Chapter6: Elasticities
Section: Chapter Questions
Problem 11P
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![Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of
cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes?
O The demand for cantaloupes at $2.00 must be inelastic.
O We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.
O The demand for cantaloupes at $2.00 must be elastic.
O The demand for cantaloupes at $2.00 must be unit-elastic.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8b5f315-88a6-49b6-b57f-a7a1bdcfadef%2Ffc88a6f6-1ca3-4130-8119-cb530ac738db%2Fgi8cwzf_processed.png&w=3840&q=75)
Transcribed Image Text:Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping. If firms lower the price of
cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes?
O The demand for cantaloupes at $2.00 must be inelastic.
O We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price.
O The demand for cantaloupes at $2.00 must be elastic.
O The demand for cantaloupes at $2.00 must be unit-elastic.
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