When the Price of Good a Is $50, the Quantity

question 175

Multiple Choice

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is

• A)1.50, and an increase in price will result in an increase in total revenue for good A.
• B)1.50, and an increase in price will result in a decrease in total revenue for good A.
• C)0.67, and an increase in price will result in an increase in total revenue for good A.
• D)0.67, and an increase in price will result in a decrease in total revenue for good A.

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Definitions:

Numbers Greater

In programming and mathematics, a comparison where values are evaluated to find those greater than a specified number.

<=200

A relational operator that means "less than or equal to 200," often used in programming and mathematical expressions to set conditions.

Less Than

A relational operator that compares two values, returning true if the first value is smaller than the second.

Not Equal To

A comparison operator used in programming and database queries to check if two values are different.