When the Price of Good a Is $50, the Quantity

Multiple Choice

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is

A) 1.50, and an increase in price will result in an increase in total revenue for good A.
B) 1.50, and an increase in price will result in a decrease in total revenue for good A.
C) 0.67, and an increase in price will result in an increase in total revenue for good A.
D) 0.67, and an increase in price will result in a decrease in total revenue for good A.