Suppose the Price of Potato Chips Decreases from $1

question 51

Multiple Choice

Suppose the price of potato chips decreases from $1.45 to $1.25 and,as a result,the quantity of potato chips demanded increases from 2,000 to 2,200.Using the midpoint method,the price elasticity of demand for potato chips in the given price range is

• A) 2.00.
• B) 1.55.
• C) 1.00.
• D) 0.64.

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Definitions:

Francis Galton

A 19th-century scientist known for his pioneering work in eugenics, statistics, and the study of human intelligence.

Alfred Binet

A French psychologist who made significant contributions to intelligence testing and developed the first practical IQ test.

Mental Age

A measure of an individual's cognitive abilities expressed in terms of the average age at which a normal individual reaches the same level of ability.

Reasoning Skills

The ability to think, conclude, and apply logical processes to solve problems, make decisions, and understand complex concepts.