Solve it as soon as possible If 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute value of the price elasticity of demand? Hint: use the midpoint formula. Select the correct answer. A) 8 B) 1 C) 1.25 D) 1.5

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter3: Demand Analysis
Section: Chapter Questions
Problem 7E: In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price...
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If 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute value of the price elasticity of demand? Hint: use the midpoint formula. Select the correct answer.  
  
A) 8  
  
B) 1  
  
C) 1.25  
  
D) 1.5

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