Using the Midpoints Formula, What Would Be Price Elasticity of Demand

question 52

Multiple Choice

Using the midpoints formula, what would be price elasticity of demand for a gallbladder operation if the number of operations fell from 6,000 to 4,000 per week after its price increased from $6,000 to $10,000?

• A) 0.25.
• B) 0.50.
• C) 0.80.
• D) 1.25

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Definitions:

Net Income

Profit after all expenses, taxes, and deductions are subtracted from total revenue.

Debt Investments

Financial assets representing money lent to others or invested in debt securities.

Acquisition

The process of obtaining control of another company by purchasing its stock, assets, or both.

Interest Earned

Income received from investment assets before taxes such as deposits, savings, and loans investments.