Solved

Using the Midpoint Method,the Price Elasticity of Demand for a Good

Question 45

Multiple Choice

Using the midpoint method,the price elasticity of demand for a good is computed to be approximately 1.5.Which of the following events is consistent with a 3.5 percent increase in the price of the good?


A) The quantity of the good demanded decreases from 25,294 to 24,000.
B) The quantity of the good demanded decreases from 50,000 to 48,847.
C) The quantity of the good demanded decreases by 2.33 percent.
D) The quantity of the good demanded decreases by 4.29 percent.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q29: If the price elasticity of supply is

Q40: There are fewer farmers in the United

Q43: Figure 5-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2178/.jpg" alt="Figure 5-1

Q44: How did the farm population in the

Q46: Figure 5-12<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2178/.jpg" alt="Figure 5-12

Q87: When quantity moves proportionately the same amount

Q112: Supply is said to be inelastic if

Q178: Last year,Joan bought 50 pounds of hamburger

Q222: Elasticity of demand is closely related to

Q238: Suppose the cross-price elasticity of demand between