Suppose that 500 candy bars are demanded at a particular price

Subject:EconomicsPrice:2.88 Bought3

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Suppose that 500 candy bars are demanded at a particular price. If the price of candy bars rises from that price by 10 percent, the number of candy bars demanded falls to 480. Using the midpoint approach to calculate the price elasticity of demand, it follows that the:

a. Demand for candy bars in this price range is unit elastic,

b. Price increase will decrease the total revenue of candy bar sellers,

c. Price elasticity of demand for candy bars in this price range is about 0.41,

d. Price elasticity of demand for candy bars in this price range is about 0.24.