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When the Price of Pencils Decreases from $3 to $1

question 298

Essay

When the price of pencils decreases from $3 to $1, the quantity demanded increases from 100 to 200 pencils.Using the midpoint method, the price elasticity of demand equals:
A.1/6.
B.1/2.
C.2/3.
D.3/2.


Definitions:

Shares Issued

Refers to the total number of shares that have been allocated and are held by shareholders, including both public investors and company insiders.

Paid-In Capital

The total amount of money that shareholders have invested in a company through the purchase of shares.

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often set to protect creditors.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

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