If the Price of Burritos Increases from $4 to $6

question 171

Essay

If the price of burritos increases from $4 to $6 and customers decrease their consumption from 20 to 10 burritos, what is the price elasticity of demand (using the midpoint method)?
A.5/3
B.2/3
C.3
D.2

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Definitions:

Aggrieved Party

An individual or entity that has suffered legal wrong or harm, and who is entitled to bring a lawsuit against the party responsible for that harm.

Modified Contract

An agreement where the original terms have been altered or amended by the parties involved, following mutual consent.

Consideration

The value (such as money, a promise, or a service) that is given by both parties in a contract making the agreement legally binding.

Personal Property

Movable assets owned by an individual or entity, as opposed to real estate or land.