Answered: + 45 units are sold at a price of $15…

+ 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute value of the price elasticity of demand? Hint: use the midpoint formula. Select the correct answer.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.3IP

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Question

If 45 units are sold at a price of $15 and 75 units are sold at a
price of $10, what is the absolute value of the price elasticity of
demand? Hint: use the midpoint formula. Select the correct
answer.
A) 8
B) 1
C) 1.25
D) 1.5

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