Within different price ranges along a linear demand curve, ...

[shenderson6]

Within different price ranges along a linear demand curve, elasticities are:
 a. constant.
  b. different.
  c. equal.
  d. the same as slope.
  e. negative 1.

Question 2

A health club sells 50 memberships when the monthly price is 60 and 70 memberships when the monthly price is 40 . The price elasticity of demand for memberships at this health club is (using the average values method):
 a. 0.25.
  b. 0.6.
  c. 1.0.
  d. 1.1.
  e. 0.83

[lorealeza77]

Answer to Question 1

b

Answer to Question 2

e