If the Price of a Magazine Increases from $5 to $7

question 378

Essay

If the price of a magazine increases from $5 to $7 and the quantity demanded of the magazines decreases from 10 million per month to 8 million per month, using the midpoint method, what is the price elasticity of demand? Show your work. Is the demand elastic, inelastic, or unit elastic?

---

Definitions:

Negative Message

Communication that conveys bad news, rejection, or feedback that might not be favorable to the receiver.

Vacation Request

A formal or informal appeal by an employee to take a predetermined amount of time off from work.

Plan Strategically

The process of defining a direction and making decisions on allocating resources to pursue this strategy.

Indirect Strategy

A communication approach where important or sensitive information is presented subtly and not as the primary message, to ease the reception or garner acceptance.