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:

Reward Power

The ability to influence others' behavior by offering positive incentives or rewards.

Wholesale Price

The cost at which goods are sold by wholesalers to retailers or distributors, generally lower than retail prices.

Larger Quantities

Denotes the procurement, production, or offering of goods in amounts greater than usual.

Strategic Partners

Businesses or entities that collaborate through agreements or alliances to achieve common goals, share resources, or enhance competitive advantages.