| Question | The demand for rosebushes in a market is as follows: Price (per rosebush) Quantity Demanded (rosebushes per week) $10 ……………………………. 230 $11 ……………………………. 150 $12 ……………………………. 90 $13 ……………………………. 40 a. Is this a straight-line demand curve? How do you know? b. Calculate the price elasticity of demand for roses for a price increase from $10 to $11. Is demand elastic or inelastic for this price change? c. Calculate the price elasticity of demand for roses for a price increase from $12 to $13. Is demand elastic or inelastic for this price change? |
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| Subject | business economics |
