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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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