Suppose That, as the Price of Product a Falls from $5

question 172

Multiple Choice

Suppose that, as the price of product A falls from $5 to $4, the quantity of A demanded increases from 2,000 to 6,000 units. In this case, what is the elasticity of demand, using the midpoint formula?

• A)0.9
• B)0.4
• C)4.5
• D)1.6
• E)3.0

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Definitions:

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides retirement, disability, and survivors benefits.

Hospital Insurance

Coverage that pays for hospital expenses incurred by the insured due to illness or injury.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retirees and disabled people.

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured while in a hospital.