If price changed from P1 to P2, causing quantity demanded for good X to change from Q1 to Q2: using the midpoint method; what is the Price Elasticity of demand? is the demand for good X elastic?inelastic?unit elastic?

a.

-5.6; elastic

b.

1; unit elastic

c.

-5.6; inelastic

d.

-1; unit elastic

Price Quantity Price Quantity Income Quantity

P₁ 9.00 Q₁ 1.000 P_y1 8.00 Q_x1 2.000 Income₁ $28,000.00 Q₁ 50.00

P₂ 8.00 Q₂ 2.000 P_y2 7.00 Q_x2 3.000 Income₂ $30,000.00 Q₂ 52.00