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Using the Midpoint Formula, Calculate the Price Elasticity of Demand

Question 68

Multiple Choice

Using the midpoint formula, calculate the price elasticity of demand for the following situation: Price rises from $6 to $8, quantity demanded falls from 2 units to 1 unit.


A) 0.5
B) 2.33
C) 1.66
D) 4

Correct Answer:

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