Suppose the Price of a DVD Rose from $15 to $17

question 326

Multiple Choice

Suppose the price of a DVD rose from $15 to $17 and the quantity demanded decreased from 1,000 per month to 900 per month.Using the midpoint formula,the ________ percent change in price lead to a ________ percent change in the quantity demanded.

• A) 12.5; 10.5
• B) 13.3; 10.0
• C) 11.8; 11.1
• D) 8.0; 9.5
• E) None of the above answers are correct.

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Definitions:

Joint Profits

The combined earnings or profits generated by a partnership or collaboration between two or more entities or firms.

Non-collusive Oligopolist

A firm in an oligopoly market structure that independently sets prices or output levels without engaging in explicit agreements with rivals.

Equilibrium Price

The price at which the quantity of a good or service supplied equals the quantity demanded, resulting in no surplus or shortage in the market.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance each other.