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MMLU-Pro / 7520 / The ABC Pencil Co. was considering a price increase and wished to determine the…

Problem

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question

The ABC Pencil Co. was considering a price increase and wished to determine the elasticity of demand. An economist and a market researcher, Key and Worce, were hired to study demand. In a controlled experiment, it was determined that at 8\textcent, 100 pencils were sold yielding an elasticity of 2.25. However, key and worce were industrial spies, employed by the EF Pencil Co. And sent to ABC to cause as much trouble as possible. So key and worce decided to change the base for their elasticity figure, measuring price in terms of dollars instead of pennies ( i.e., $.08 for 8\textcent and $.10 for 10\textcent ). How will this sabotage affect the results?
Plain-text mathematical notation (without MathML)
The ABC Pencil Co. was considering a price increase and wished to determine the elasticity of demand. An economist and a market researcher, Key and Worce, were hired to study demand. In a controlled experiment, it was determined that at 8\textcent, 100 pencils were sold yielding an elasticity of 2.25. However, key and worce were industrial spies, employed by the EF Pencil Co. And sent to ABC to cause as much trouble as possible. So key and worce decided to change the base for their elasticity figure, measuring price in terms of dollars instead of pennies ( i.e., $.08 for 8\textcent and $.10 for 10\textcent ). How will this sabotage affect the results?
Original LaTeX notation
The ABC Pencil Co. was considering a price increase and wished to determine the elasticity of demand. An economist and a market researcher, Key and Worce, were hired to study demand. In a controlled experiment, it was determined that at 8\textcent, 100 pencils were sold yielding an elasticity of 2.25. However, key and worce were industrial spies, employed by the EF Pencil Co. And sent to ABC to cause as much trouble as possible. So key and worce decided to change the base for their elasticity figure, measuring price in terms of dollars instead of pennies ( i.e., $.08 for 8\textcent and $.10 for 10\textcent ). How will this sabotage affect the results?

category

economics

options

  1. The calculated elasticity will appear much higher, misleading the company
  2. The change in base will create an illusion of inelastic demand
  3. The elasticity measure will decrease
  4. The price point for maximum revenue will appear to change dramatically
  5. Elasticity is independent of the unit of measurement employed.
  6. The price-demand curve will shift to the right
  7. The elasticity measure will increase
  8. The calculated elasticity will seem artificially low, causing confusion in pricing strategy
  9. The sabotage will significantly affect the results
  10. The demand will seem more elastic than it actually is

src

stemez-Economics

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Source and history

upstream_id / Original problem ID
7520
task_id
439b7ca7-5909-5cdb-a7c8-c6772c758a50
task_key
default--test--7520
task_revision_id
1
config / split
default / test

Official source

initial import