Suppose a Decrease in Demand Causes the Price to Decrease

question 185

Multiple Choice

Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700.Using the midpoint method,the elasticity of supply equals

• A) 0.81.
• B) 1.24.
• C) 2.83.
• D) 0.18.
• E) None of the above answers is correct.