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

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Definitions:

Demand Note

A loan or debt instrument that is repayable on demand at the choice of the lender at any time.

Lump Sum

A single payment made at a particular time, as opposed to multiple payments over time.

Installment Loan

is a type of loan that is repaid over time with a set number of scheduled payments, typically monthly.

Outstanding Principal

The remaining amount of money borrowed on a loan or bond that has not yet been repaid.