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Unformatted text preview: D), For each 0.85 percent of price rise, the quantity demanded decreased by 0.85 percent. 2, A hot dog vendor on a street corner wants to increase the total revenue from selling hot dogs. The price elasticity of demand for the hot dogs is 1.1. Hence the vendor will A), raise the price of a hot dog as high as possible. B), do whatever it takes to sell as many more hot dogs as possible. C), lower the price of a hot dog. D), work harder to reduce the costs of production. 3, A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case? A), 1/2 B), -2 C), -1/2 D), 2 4, If the price of a good increases from $3 to $4, and the quantity demand remains unchanged, then the demand is A), perfectly inelastic. B), perfectly elastic. C), somewhat elastic. D), infinite. THE END 2...
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This test prep was uploaded on 04/19/2008 for the course ECON 200 taught by Professor Newton during the Spring '08 term at Ohio State.
- Spring '08