Question: Help please I must be missing something on this question: When the price of candy bars decreased from $0.80 to $0.75, the quantity demanded changed

Help please I must be missing something on this question:

When the price of candy bars decreased from $0.80 to $0.75, the quantity demanded changed from 4,000 per day to 4,500 per day. In this price range, the price-elasticity coefficient (based on the midpoint formula) for candy bars is:

I am coming up with $1.82

but the answers given is 1.2, 2.5, .55, 1.63

Thank you

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!