Use the following to answer question(s):
-(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $1.75 and $1.50?
A) -0.42
B) -1.5
C) -1.86
D) none of the above

Question

Use the following to answer question(s): 
-(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $1.75 and $1.50?
A) -0.42 
B) -1.5 
C) -1.86 
D) none of the above

Quizplus · Accepted Answer

Using the midpoint formula, we can calculate the price elasticity of demand as:
[(950-1050)/((950+1050)/2)] / [(1.5-1.75)/((1.5+1.75)/2)] = -1.86. Therefore, the correct answer is C.

Use the Following to Answer Question(s)