Suppose That 50 Candy Bars Are Demanded at a Particular

question 237

Multiple Choice

Suppose that 50 candy bars are demanded at a particular price.If the price of candy bars rises from that price by 5 percent,the number of candy bars demanded falls to 48.Using the midpoint approach to calculate the price elasticity of demand,it follows that the

• A)demand for candy bars in this price range is elastic.
• B)price increase will decrease the total revenue of candy bar sellers.
• C)price elasticity of demand for candy bars in this price range is about 1.22.
• D)price elasticity of demand for candy bars in this price range is about 0.82.

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Definitions:

Polynomial Equation

An equation that involves only polynomials, which are expressions consisting of variables and coefficients structured over addition, subtraction, and multiplication.

Factoring

The process of breaking down an equation into simpler components that are multiplied together.

Equation

An assertion in mathematics that two expressions, which may include variables, are equal.

Factoring

The process of breaking down an expression into a product of simpler expressions.