Register
Suppose the demand for cherries sold from roadside stands in Michigan is perfectly elastic. The owner of one roadside stand raises the price of cherries by 10%, as a result 1 point A. Zero cherries are
243,322 views
4 votes
4 votes
Suppose the demand for cherries sold from roadside stands in Michigan is perfectly elastic. The owner of one roadside stand raises the price of cherries by 10%, as a result 1 point A. Zero cherries are sold at this stand. B. No change in the quantity demanded at this stand. C. A 10% decrease in the quantity demanded at this stand. D. A 10% increase in the quantity demanded at this stand. E. All available cherries will be sold.

User Nullbyte
by
2.7k points

1 Answer

21 votes
21 votes

Answer:

A

Step-by-step explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

it is in perfectly competitive markets that demand is perfectly elastic

User Lae
by
3.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!