# Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ? Correct Answer: A. 1.4. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?

Direct Answer & Quick Reference

The correct option is **A. 1.4**.

A. 1.4 **(Correct Answer)**

B. 0.66

C. 0.75

D. 2.0

✨ Explain with AI

Verified Key: A. 1.4
Solved by 2,546+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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