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A Men's Tie Store Sold an Average of 30 Ties

question 226

Essay

A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie.The price elasticity of demand, using the midpoint method, is:
A.greater than zero but less than 1.
B.equal to 1.
C.greater than 1 but less than 3.
D.greater than 3.


Definitions:

Satellite System

A network of satellites working together to provide a variety of services such as communication, navigation, or earth observation from space.

Price

The amount of money required to purchase a product or service, determined by factors such as cost of production, market demand, and competition.

Quality

The degree to which a product or service meets or exceeds customer expectations, often measured in terms of durability, reliability, and performance.

Compensation Method

A strategy or approach used to calculate and distribute payment or rewards to employees or partners.

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