Refer to the Information Provided in Figure 5

Multiple Choice

Refer to the information provided in Figure 5.3 below to answer the question(s) that follow. Figure 5.3
-Refer to Figure 5.3. Use the midpoint formula. If the price of a gardenburger decreases from $8 to $7, the price elasticity of demand equals ________ and demand is ________.

A) -0.47; inelastic
B) -2.14; elastic
C) -2.29; inelastic
D) -3.5; elastic