Table 5-2 -Refer to Table 5-2.Using the Midpoint Method,if the Price Falls

question 242

Multiple Choice

Table 5-2

-Refer to Table 5-2.Using the midpoint method,if the price falls from $40 to $20,the price elasticity of demand is

• A) zero.
• B) inelastic.
• C) unit elastic.
• D) elastic.

---

Definitions:

Inputs

Resources such as labor, capital, and materials used in the production process to create an output.

Marginal Product

The additional output that is produced by adding one more unit of a specific input while holding all other inputs constant.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Labor

Utilization of human physical and mental capabilities in the generation of goods and services.