If 50 Units Are Sold at a Price of $20

question 245

Multiple Choice

If 50 units are sold at a price of $20 and 80 units are sold at a price of $15, what is the absolute value of the price elasticity of demand? Use the midpoint formula.

• A)0.17
• B)0.62
• C)1.62
• D)5

---

Definitions:

CVP Graph

A Cost-Volume-Profit (CVP) graph visually represents the relationship between costs, volume of production, and profit.

Total Expense Line

Represents the aggregate of all expenses, both fixed and variable, incurred by a business during a specified accounting period.

Total Revenue Line

A financial metric showing the total income generated from ordinary activities before any expenses are subtracted.

CVP Graph

A visual representation used in Cost-Volume-Profit Analysis to show the relationship between total costs, total sales, and profit (or loss) at various sales volumes.