Using the Midpoints Formula, What Would Be Price Elasticity of Demand

question 52

Multiple Choice

Using the midpoints formula, what would be price elasticity of demand for a gallbladder operation if the number of operations fell from 6,000 to 4,000 per week after its price increased from $6,000 to $10,000?

• A) 0.25.
• B) 0.50.
• C) 0.80.
• D) 1.25

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Definitions:

Occipital Bone

A cranial bone situated at the lower back part of the skull, forming the base and back wall of the skull.

Ethmoid Bone

A sponge-like bone located at the roof of the nasal cavity that separates the nasal cavity from the brain. It also forms part of the orbit of the eye.

Gout

A form of inflammatory arthritis characterized by recurrent attacks of a red, tender, hot, and swollen joint, caused by elevated levels of uric acid in the blood.

Uric Acid

A waste product found in the blood, resulting from the breakdown of purines, which are substances found in many foods and cells of the body; high levels can lead to gout.