Using the Midpoint Method,the Price Elasticity of Demand for a Good

question 48

Multiple Choice

Using the midpoint method,the price elasticity of demand for a good is computed to be approximately 2.Which of the following events is consistent with a 0.1 percent increase in the price of the good?

• A)The quantity of the good demanded decreases from 250 to 150.
• B)The quantity of the good demanded decreases from 200 to 100.
• C)The quantity of the good demanded decreases by 0.05 percent.
• D)The quantity of the good demanded decreases by 0.2 percent.

---

Definitions:

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product, used to distinguish it from others.

Inter Vivos Gift

A gift given by a living person to another which takes effect during their lifetime.

Intestate Distribution

The process of distributing a deceased person's assets according to state laws when they die without a valid will.

Intellectual Property

Rights arising from creation and innovation in the areas of industry, science, literature, and art.