A heart surgeon starts with an initial price of $3,000 and reduces price to $2000. In response, quantity demanded of heart surgeries does not change, and stays at 300. Use the mid-point method of elasticity to calculate | Ed]. Which of the following is true? a) |Ed|>1 (Price elasticity of demand is greater than 1) b) 0<| Ed|<1 (Price elasticity of demand is greater than 0 but less than 1) c) Ed|=1 (Price elasticity of demand is equal to 1) d) |Ed|=0 (Price elasticity of demand is equal to 0)

A heart surgeon starts with an initial price of $3,000 and reduces price to $2000. In response, quantity demanded of heart surgeries does not change, and stays at 300. Use the mid-point method of elasticity to calculate | Ed]. Which of the following is true? a) |Ed|>1 (Price elasticity of demand is greater than 1) b) 0<| Ed|<1 (Price elasticity of demand is greater than 0 but less than 1) c) Ed|=1 (Price elasticity of demand is equal to 1) d) |Ed|=0 (Price elasticity of demand is equal to 0)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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