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. Instructions: Round your answers to two decimal places. Include a negative sign if necessary. a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is b. Suppose the price decreases from $1.50 to $1.00.

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. Instructions: Round your answers to two decimal places. Include a negative sign if necessary. a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is b. Suppose the price decreases from $1.50 to $1.00.

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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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.
Instructions: Round your answers to two decimal places. Include a negative sign if necessary.
a. Suppose the price increases from $1.00 to $1.50.
The price elasticity of demand is
b. Suppose the price decreases from $1.50 to $1.00.
The price elasticity of demand is
c

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