Calculate accurately Suppose 10 units of a good are sold when the price is $2 per unit, and 14 units are sold at a price of $1 per unit. Calculate the price elasticity of demand for this good over this price range using the midpoint formula. Does your answer suggest the demand is elastic or inelastic?

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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Calculate accurately

 

Suppose 10 units of a good are sold when the price is $2
 per unit, and 14 units are sold at a price of 
$1
 per unit. Calculate the price elasticity of demand for this good over this price range using the midpoint formula. Does your answer suggest the demand is elastic or inelastic?

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