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If the price elasticity of demand for avocado at price p* is equal to -1.5, what is the value of p*?

1) $3.00
2) $3.20
3) $3.40
4) $3.60
5) $3.80

User Tomazahlin
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1 Answer

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Final answer:

The value of p* where the price elasticity of demand for avocados is -1.5 cannot be determined without further information regarding changes in quantity and price.

Step-by-step explanation:

The question is asking for the price at which the price elasticity of demand for avocados is -1.5. This is a microeconomics concept that describes how the quantity demanded changes in response to a change in price. To determine the value of p* where the elasticity is -1.5, we would need additional information about the change in quantity demanded and the change in price that would result in an elasticity of -1.5.

Without this information, we cannot accurately determine the value of p* based solely on the price elasticity of demand provided. Typically, elasticity is calculated using the formula (percentage change in quantity demanded) / (percentage change in price). However, to calculate the precise price point p* associated with a specific elasticity, one needs the initial quantity and price values, or other relevant information about the demand curve.

User Dxuhuang
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