ch6 - Name Date ch6 1 The Cozy Chair Company believes it...

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Name: __________________________ Date: _____________ ch6 1. The Cozy Chair Company believes it can sell 200 chairs at \$200 per chair, or 300 chairs at \$150 per chair. Using the midpoint formula, you can calculate that the price elasticity of demand (to the nearest tenth) for Cozy Chairs is: A) 2.5. B) 1.4. C) 0.7. D) 0.5. Use the following to answer question 2: 2. (Table: Market for Pizza) In the table, the price elasticity of demand for pizza between the prices of \$14 and \$12 per pizza when income is \$1,000 per month is: A) 0.6. B) 1. C) 1.6. D) 2. Page 1

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Use the following to answer question 3: Figure: Demand Curve for Oil 3. (Figure: Demand Curve for Oil) In the figure, the price elasticity of demand between \$20 and \$21, using the midpoint method, is approximately: A) 0.21. B) 0.49. C) 2.1. D) 4.9.
Use the following to answer question 4: Figure: Demand for Shirts 4. (Figure: Demand for Shirts) The price elasticity of demand for the segment BC, using the midpoint method, is: A) greater than 3.33 (absolute value).

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ch6 - Name Date ch6 1 The Cozy Chair Company believes it...

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