Table 5-2
​ -Refer to Table 5-2

question 8

Multiple Choice

Table 5-2
​
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Price } \\\text { (Dollars per unit) }\end{array} & \begin{array} { c } \text { Quantity Demanded } \\\text { (Units) }\end{array} \\\hline 100 & 0 \\\hline 80 & 50 \\\hline 60 & 100 \\\hline 40 & 150 \\\hline 20 & 200 \\\hline 0 & 250 \\\hline\end{array}$$
-Refer to Table 5-2. Using the midpoint method, if the price falls from $80 to $60, the absolute value of the price elasticity of demand is

• A)0.43.
• B)2.33.
• C)0.29.
• D)0.67.

---

Definitions:

MPC

Marginal Propensity to Consume, indicating the increase in personal consumer spending (consumption) that occurs with an increase in disposable income.

Internally Held

Pertains to public debt that is owed to lenders within a country rather than external lenders.

Public Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and international organizations.

Productive Capacity

The maximum output that an economy can achieve when using its resources fully and efficiently.