\fyou u: 4. 5. True or False. Explain your answer. a. A. price elasticity of demand of: for a specic cola means that ifthe price increases 1D percent= the quantity demanded of the cola u'ill decrease by 2 percent. h. A price elasticity of demand 3' for a specific cola means that ifthe price increases 1 percent'__ the quantity demanded of the cola u'ill decrease by 2 percent. The graph on the right depicts: {a} a perfectly elastic demand curve {h} a budget line {:2} a perfectly elastic demand cun'e lid] an Engel cun'e Qua ntlty A local store notices that when it increases the price of milk om 32.50 to 53.50 per gallon: it sold the same amount ofmilk per week [163 gallons}. Since everything else remains the same: 'l'E would say the a. demand for milk is perfectly elastic b. demand for milk is elastic c. demand for milk is perfectly inelastic d. demand for milk is unitary elastic e. law of supply does not apply in this situation The demand for necessity tends to he a. less elastic than the demand for a luxury b. more elastic than the demand for a luxury c. unitary over the entire demand curve d. less elastic: the larger is the number of sellers e. unpredictable The supermarket is selling 2,0'30 containers ofmargarine a week at 32.50 each. You Icnoty that the own price elasticity ofdemand for margarine is 40.3. Ifthe supermarket decides to reduce the price by 10%: hou' many more margarines containers would the supermarket be selling that u'eelciJ Show your 1s'ork