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A heart surgeon starts with an initial price of $3,000 and reduces price to $2000. In response, quantity demanded of heart surgeries does not change,
A heart surgeon starts with an initial price of $3,000 and reduces price to $2000. In response, quantity demanded of heart surgeries does not change, and stays at 300. Use the mid-point method of elasticity to calculate |Ed|. Which of the following is true? a) |Ed|>1 (Price elasticity of demand is greater than 1) b) 0<|Ed|<1 (Price elasticity of demand is greater than 0 but less than 1) c) |Ed|=1 (Price elasticity of demand is equal to 1) d) |Ed|=0 (Price elasticity of demand is equal to 0)
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