When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When

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When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When the price rises to $1.50, the quantity demanded falls to 60,000 bars. Calculate the price elasticity of demand using the mid-point method.

a. Suppose price increases from $1 to $1.50. Calculate the price elasticity of demand.

b. Suppose price decreases from $1.50 to $1. Calculate the price elasticity of demand.

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Microeconomics

ISBN: 978-1259813337

2nd edition

Authors: Dean S. Karlan, Jonathan J. Morduch

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Question Posted: Oct 03, 2018 11:23 AM

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When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When

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a 60000 10000080000150 100125 125 b ...View the full answer

Microeconomics

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