If the price of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then, according to the midpoint formula, the value of price elasticity of demand for Pepsi-Cola is
A) -0.5
B) -0.25
C) -1
D) -3
E) -2
Correct Answer:
Verified
Q10: Price elasticity of demand is defined as
A)the
Q11: The price elasticity of demand is equal
Q12: The general term elasticity refers to a
Q13: In calculating price elasticity of demand, which
Q14: The midpoint price between $20 and $40
Q16: Another word for elasticity is
A)responsiveness
B)happiness
C)bonus
D)profit
E)surplus
Q17: If a $1 increase in price leads
Q18: The midpoint quantity between 100 and 300
Q19: Price elasticity of demand is useful because
Q20: Elasticity is always
A)measured in dollars
B)measured in dollars
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