Refer to the Accompanying Table

question 2

Multiple Choice

Refer to the accompanying table.When the price drops from $5 to $3,price elasticity of demand for sushi (using the midpoint method) at an income of $30,000 is

• A) 0.71.
• B) 0.67.
• C) 0.10.
• D) 0.33.
• E) -0.67.

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Definitions:

Price

Price is the amount of money expected, required, or given in payment for something, reflecting its value in terms of currency.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression, often representing a measure of some property.

Midpoint Formula

A method used in geometry and economics to find the midpoint or the average of two points on a line segment.