If 12 Candy Bars Are Demanded at

question 130

Multiple Choice

If 12 candy bars are demanded at $.30 each and 4 candy bars are demanded at $.50 each,what is the price elasticity of demand using the midpoint formula?

• A)2
• B).5
• C)7.5
• D).4
• E)1.67

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Definitions:

First Class

Describes the highest quality or most expensive service, accommodation, or means of transportation available.

Miles Traveled

A measure of distance covered, often used in the context of transportation, commuting, or travel.

Perfect Complements

Goods that are always used together in fixed proportions, where the increase in consumption of one good leads to an equal increase in the consumption of the other.

Income Effect

How an alteration in the income of an individual or the economy influences the demand level for a particular product or service.