(Table: the Price of a Hamburger) Using the Midpoint Formula $\begin{array}{|l|l|}\hline \text { Price } & \text { Quantity } \\\hline \$ 3 & 750 \\\hline \$ 5 & 450 \\\hline\end{array}$

question 6

Multiple Choice

(Table: The Price of a Hamburger) Using the midpoint formula, what is the price elasticity of the demand for hamburgers?
$\begin{array}{|l|l|}\hline \text { Price } & \text { Quantity } \\\hline \$ 3 & 750 \\\hline \$ 5 & 450 \\\hline\end{array}$

• A) .5
• B) 1
• C) 2.5
• D) .01

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Definitions:

Reserve Requirement

The minimum amount of reserves that banks must hold against deposits, as mandated by central banking authorities.

Money Supply

The all-encompassing amount of economic monetary assets at a designated time.

Reserve Requirements

Central bank regulations setting the minimum amount of reserves that must be held by a commercial bank.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.