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Use the information to answer the question 40,41,42. Whrn the price of a product is R8 and the quantity demanded will be 50 units.
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Use the information to answer the question 40,41,42.

Whrn the price of a product is R8 and the quantity demanded will be 50 units. If the price increases to R12 the quantity demanded falls to 40 units. Ignoring the negative signs.


40.What range will the price is elasticity of demand be when using the point elasticity formula and indicate the category for this elasticity coefficient

A. 0,5 and demand is inelastic.

B. 0,4 and the demand is inelastic.

C. 1 and unitary elastic demand.

D. 0,55 and demand is inelastic.


41.Using the arc method what would be the elasticity coefficient and indicate the category for the value obtained?

A. 0.5 and demand is inelastic.

B. 0.4 and the demand is inelastic.

C. 1 and unitary elastic demand.

D. 0.55 and demand is inelastic.


42. If the cross elasticity of demand between beef mince and spaghetti is negative 4,0 this implies that these goods are

A. Complements.

B. Necessities.

C. Substitutes.

D. Income inferior goods.

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