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In the Accompanying Table, Assume That the Price of Ice

Question 10

Multiple Choice

In the accompanying table, assume that the price of ice skates increases from $10 to $20 per pair. Using the midpoint method, calculate the price elasticity of demand for ice skates for hockey players.  Price of Ice  Skates  Quantity Demanded  (hockey players)   Quantity  Demanded  (recreational  skaters)  $109570$208560$407545$506525$606010\begin{array} { | l | c | c | } \hline \begin{array} { l } \text { Price of Ice } \\\text { Skates }\end{array} & \begin{array} { l } \text { Quantity Demanded } \\\text { (hockey players) }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Demanded } \\\text { (recreational } \\\text { skaters) }\end{array} \\\hline \$ 10 & 95 & 70 \\\hline \$ 20 & 85 & 60 \\\hline \$ 40 & 75 & 45 \\\hline \$ 50 & 65 & 25 \\\hline \$ 60 & 60 & 10 \\\hline\end{array}


A) -6.00
B) 0.67
C) 0.11
D) -0.16
E) 3.00

Correct Answer:

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