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A recent winter storm led to unexpected road closures in and around a small town about 25 miles west of Albany, New York. This led
A recent winter storm led to unexpected road closures in and around a small town about 25 miles west of Albany, New York. This led to a decrease in the supply of quite a few essential products such as laundry detergent. As a result, the price of laundry detergent increased from $8 to $12, and the quantity demanded decreased from 110 to 90 cases. Using the midpoint method, one can conclude that the price elasticity of demand (in absolute terms) for this price change is equal to
A. 0.5
B. 2
C. 0.2
D. 5
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