Suppose the price of a product rises from 6 to 10 dollars and, as a result, the quantity demanded falls from 30 to 10 units. Using the midpoint formula, the absolute value of the elasticity of demand for this product is equal to a)5 b)2 c)1/2 d)

Suppose the price of a product rises from 6 to 10 dollars and, as a result, the quantity demanded falls from 30 to 10 units. Using the midpoint formula, the absolute value of the elasticity of demand for this product is equal to a)5 b)2 c)1/2 d)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Question

a)5

b)2

c)1/2

d)1

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