When the Price of Good a Is $50, the Quantity

question 175

Multiple Choice

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is

• A)1.50, and an increase in price will result in an increase in total revenue for good A.
• B)1.50, and an increase in price will result in a decrease in total revenue for good A.
• C)0.67, and an increase in price will result in an increase in total revenue for good A.
• D)0.67, and an increase in price will result in a decrease in total revenue for good A.

---

Definitions:

Toxemia

A medical condition in pregnancy characterized by high blood pressure, swelling, and protein in the urine.

Pre-Eclampsia

A health complication in pregnant individuals, featuring heightened blood pressure and symptoms showing organ system damage, especially in the liver and kidneys.

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, often leading to health problems such as heart disease.

Diethylstilbestrol

A synthetic estrogen that was prescribed between the 1940s and 1971 to prevent pregnancy complications, later found to cause cancer and other significant health issues.