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Question - When the price of a bar of chocolate is $1, demand is 100,000 bars. When the price rises to $1.50, demand falls to 60,000 bars. Calculate the price elasticity of demand according to the instructions below and express your answer in absolute value.
a. Suppose price increases from $1 to $1.50. Calculate the price elasticity of demand in terms of percent change.
b. Suppose price decreases from $1.50 to $1. Calculate the price elasticity of demand in terms of percent change.
c. Suppose the price increases from $1 to $1.50. Calculate the price elasticity of demand using the mid-point method.
d. Suppose the price decreases from $1.50 to $1. Calculate the price elasticity of demand using the mid-point method.
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