Refer to the Accompanying Table to Answer the Questions

question 57

Multiple Choice

Refer to the accompanying table to answer the questions. $$\begin{array} { | l | c | c | } \hline \begin{array} { l } \text { Price of } \\\text { Erasers }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Demanded of } \\\text { Erasers }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Demanded of } \\\text { Pencils }\end{array} \\\hline \$ .50 & 10 & 12 \\\hline \$ 1.00 & 8 & 11 \\\hline \$ 1.50 & 7 & 10 \\\hline \$ 2.00 & 6 & 9 \\\hline \$ 2.50 & 5 & 8 \\\hline\end{array}$$
-The price of erasers increases from $0.50 to $1.00 per eraser. Use the midpoint method to calculate the cross-price elasticity of demand between pencils and erasers.

• A) -0.13
• B) 7.67
• C) -7.67
• D) 0.13
• E) -3

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Definitions:

Cross-sectional

A type of observational study that analyzes data from a population, or a representative subset, at a specific point in time.

Early Adolescence

A developmental stage referring to the period between childhood and adolescence, typically ages 10 to 14.

School Age

A stage in human development that typically refers to the period when children attend primary and secondary school, generally between the ages of 5 and 18.

Middle Adolescence

A developmental stage typically ranging from ages 14 to 17, characterized by increased independence, identity exploration, and emotional and social development.