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