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just olya [345]
4 years ago
5

Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, an

d the quantity demanded falls by 20%.The fact that quantity demanded changed by more than the price change suggests that:________.A) The consumer no longer prefers the iced tea drink.B) The demand for Tasty Treat Tea is elastic.C) The demand for Tasty Treat Tea is inelastic.D) The consumer no longer shops at Tasty Treat Tea.
Business
2 answers:
Viktor [21]4 years ago
9 0

Answer:

b

Explanation:

answer

slavikrds [6]4 years ago
4 0

Answer:

The correct answer is B) The demand for Tasty Treat Tea is elastic.

Explanation:

An elastic demand is that demand that is sensitive to a change in price. In this way, a small variation in the price causes a more than proportional change in the quantity demanded. Thus, for example, if the price increases by 10% and in response the quantity demanded is reduced by more than 10%, then the demand is said to be elastic.

There are several factors that determine the elasticity of demand at a given time. Here are some factors that make demand tend to be more elastic:

  • Goods with more and better substitutes have a more elastic demand than goods that lack substitutes
  • In the long term the demands are more elastic than in the short term
  • The goods in which the consumer spends an important part of his budget usually have a more elastic demand than those in which the portion of the expenditure is insignificant
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solong [7]

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Explanation:

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kondor19780726 [428]
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7 0
3 years ago
Read 2 more answers
study Assume that you are going to invest $120,000 in a two asset portfolio. You will invest $80,000 in the fully diversified ma
Ratling [72]

Answer:

9.33%

Explanation:

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5 0
3 years ago
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