2. Economics
3. for the following scenario select all answers that are correctandnbspconsider...

# Question: for the following scenario select all answers that are correctandnbspconsider...

###### Question details

For the following scenario, select all answers that are correct.

Consider demand for digital SLR cameras in some market. When the price of digital SLR cameras was $2000, consumers bought 4000 units. Instead, when the price fell to$1200, consumers bought 5000 units.

Important note: if you arrive at an answer for the price elasticity of demand that is a negative number, you should ignore the minus sign and choose the corresponding answer that is a positive number.

a) Using the midpoint method, the price elasticity of demand is 0.44 (rounded to 2 decimal places)

b) Using the midpoint method, the price elasticity of demand is 0.625 (rounded to 2 decimal places)

c) The demand for SLR cameras is elastic in this region

d) Total expenditure (or total revenue) in the SLR camera market decreased with the price fall