Figure 5-14 -Refer to Figure 5-14.Using the Midpoint Method,what Is the Price

question 7

Multiple Choice

Figure 5-14
-Refer to Figure 5-14.Using the midpoint method,what is the price elasticity of supply between $16 and $40?

• A)0.125
• B)0.86
• C)1.0
• D)2.5

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Definitions:

Marginal Benefit

The added gratification or usefulness that an individual acquires from the consumption of an additional unit of a good or service.

Marginal Benefit Curve

A graphical representation showing how the benefit to consumers changes with each additional unit consumed.

Total Benefit

The entire value or advantage received from consuming a good or service.

Marginal Benefit

The increased happiness or advantage someone gets from using another unit of a certain good or service.