Refer to the diagram and assume that price increases from $2 to $10. The coefficient of price elasticity of demand (midpoint formula) relating to this change in price is about:
A. .25 and demand is inelastic.
B. 1.5 and demand is elastic.
C. 1 and demand is unit elastic.
D. .67 and demand is inelastic.
A. .25 and demand is inelastic.
Economics
You might also like to view...
Comment on the following statement. "Once general equilibrium is achieved this will result in a long-run equilibrium as well."
What will be an ideal response?
Economics
Plot the demand for caviar given the following information on quantity consumed and total utility; then explain why caviar sells for such a high price. Quantity (in ounces) Total Utility (in dollars) 1 50 2753 884 95 599?
What will be an ideal response?
Economics