Question: Hi , just going over this question. i find that 2nd and 3rd answer is correct ? or am i seeing this wrong ? Price

Hi , just going over this question.

i find that 2nd and 3rd answer is correct ? or am i seeing this wrong ?

Price elasticity of demand. Demand for Mars Bars can be described by the following equation: P = 10 -2Q, where P stands for the price and Q stands for the quantity demanded, 10 stands for the price when output is zero, and 2 stands for the change in price relative to the change in quantity. Which of the following is correct? At the price of $8, the price elasticity of demand is -10 and total expenditure would be $8. At the price of $6, the price elasticity of demand is -1.5 and total expenditure would be $12. At the price of $4, the price elasticity of demand is -0.67 and total expenditure would be $12. At the price of $2, the price elasticity of demand is -0.25 and total expenditure would be $10. $10 P AQ 8 1 $8 Price of Mars Bars RAQ 6 1 $6 1 xp 2 5 -1.5 $4 $2 P AQ 2 1 " =0 ' AP 7 7 -0.25 SO Q of Mars Bars

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