Ceteris Paribus, If the Price of a Good Decreases from $32

question 117

Multiple Choice

Ceteris paribus, if the price of a good decreases from $32 to $24 and the quantity demanded of the good increases from 80 units sold to 100 units sold, the price elasticity of demand (using the midpoint method) for that good is

• A) 1.00.
• B) 0.29.
• C) 0.78.
• D) 1.20.