Total revenue is $25,000 if price is $10, but when price increases to $12, totalrevenue falls to $24,000. Use the midpoint formula to calculate the price elasticity ofdemand between $10 and $12.(keep your answer positive and keep 2 decimal point if applicable)

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total revenue is $25,000 if price is $10, but when price increases to $12, total revenue falls to $24,000. Use the midpoint formula to calculate the price elasticity of demand between $10 and $12. (keep your answer positive and keep 2 decimal point if applicable)