If a Price Increase from $5 to $7 Causes Quantity

question 13

Multiple Choice

If a price increase from $5 to $7 causes quantity demanded to fall from 150 to 100,what is the absolute value of the own price elasticity at a price of $7?

• A) 0.57
• B) 1.75
• C) 0.02
• D) 1.24

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Definitions:

Extensive

Describes something that covers a large area or has a wide scope or range.

Limited

something confined within boundaries, restricted in size, amount, or extent.

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