When the Price of Pencils Decreases from $3 to $1,the

question 100

Multiple Choice

When the price of pencils decreases from $3 to $1,the quantity demanded increases from 100 to 200 pencils.By the midpoint method,the price elasticity of demand equals:

• A)0.17.
• B)0.5.
• C)0.67.
• D)1.5.

---

Definitions:

Bankruptcy Petition

A formal request filed to the court by an individual or business entity seeking relief from unmanageable debts through bankruptcy proceedings.

Cash Receipts

The total amount of money, including cash, checks, and electronic transfers, received by a business during a given period for goods or services sold.

Fresh Start

A principle allowing entities undergoing bankruptcy to revalue their assets and liabilities, providing an opportunity to reset their financial position.

Goodwill

An intangible asset representing the value of a business's brand, customer relationships, and intellectual property beyond tangible assets.