In the figure above, the demand is inelastic in the range of prices between
A) $3.50 and $4.50 per cup
B) $2.50 and $3.50 per cup
C) $1.00 and $2.00 per cup
D) $2.25 and $4.50 per cup
E) $2.75 and $3.75 per cup
C
You might also like to view...
At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts. She spends $5 a day at the shop on 3 doughnuts and 2 cups of coffee. Is Hannah maximizing her total utility?
A) No. B) Maybe, but I need to know more about Hannah's income. C) Yes. D) Maybe, but I need to know more about Hannah's marginal utility per dollar for each of the two goods.
Since 1970, the evidence for the U.S. suggests that the average rate of unemployment required to keep inflation constant has been
A) between 1% and 2%. B) between 2% and 3%. C) between 3% and 4%. D) between 9% and 10%. E) none of the above