If the Price of Chocolate-Covered Peanuts Decreases from $1

question 241

Multiple Choice

If the price of chocolate-covered peanuts decreases from $1.05 to $0.95 and the quantity demanded increases from 180 bags to 220 bags, then the price elasticity of demand (using the midpoint method) is:

• A)0.5.
• B)1.
• C)2.
• D)greater than 2.