A decrease in the price of a good from $5 to $4 results in the increase in the quantity demanded from 2000 to 2400. Using the mid point formula the coefficient of elasticity for the good is about:

Group of answer choices

a. 0.95

b. 0.82

c. 1.22

d. 0.76

e. 1

If demand for a good, Qd, is given by Qd = 5/(P3) By how many percent must the

price be cut to increase the quantity sold by 30 per cent?

Group of answer choices

a. 10

b. 20

c. 30

d. 40

e. none of the above.

Which of the following is likely to make the demand for a good more elastic:

Group of answer choices

a. the good is a necessity

b. the good is narrowly defined

c. the period of time is short

d. the good uses up a small portion of the budget

e. none of the above.