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.

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