Midpoint? formula-calculate the price elasticity of demand

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Reference no: EM131244551

1. Using the midpoint? formula, calculate the price elasticity of demand if a price rise from? $8 to? $10 and decreases the quantity demanded from 20 units to 15 units. The price elasticity of demand? (in absolute? value) equals

A. 2.5.

B.1.29.

C. 0.06

D. 0.78.

2. If an increase in the price of tortillas causes a decrease in demand for? rice, then tortillas and rice are

A. complementary goods.

B. normal goods.

C. substitute goods.

D. inferior goods.

Reference no: EM131244551

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