Answered: Which of the following examples shows…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6PA: The price of coffee rose sharply last month, while the quantity sold remained the same. Five people...

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Question

Which of the following examples shows the most elastic demand?
a. When the price of gasoline increases from $2.50 to $2.75 per gallon, sales remain the same.
b. When the price of stoves increases from $700 to $800 per stove, sales decrease by half.
c. When the price of apples decreases from $2 to $1 per pound, sales increase 10 percent.
d. When the price of cell phones decreases from $100 to $80 per phone, sales triple.

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