To Answer the Question,refer to the Following Table Showing a Demand

question 52

Multiple Choice

To answer the question,refer to the following table showing a demand schedule: If price falls from $200 to $150,what is the elasticity of demand over this range?

• A)-0.62
• B)-1.0
• C)-1.17
• D)-2.5
• E)-3.0

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on differences in costs.

Marginal Cost

The additional expense incurred from producing another unit of a product.

Marginal Revenue

The additional revenue that a company generates from selling one more unit of a good or service.

Average Total Cost

The total cost of production divided by the total number of units produced.