Suppose the quantity demanded of ski boats falls from 4.0 million to 3.0 million as a result of an average price increase from $20,000 to $25,000 per boat. The absolute value of the price elasticity of demand is closest to (in absolute value) :

1.29

Explanation:

Percentage change in quantity demanded = (4 - 3) ÷ ((4 + 3)/2) =  0.285714285714286

Percentage change in price = (25,000 - 20,000) ÷ ((20,000 + 25,000)/2) = 5,000/20,000 = 0.222222222222222

Absolute value of the price elasticity of demand = 0.285714285714286 ÷ 0.222222222222222 = 1.29

Mr. Larson bought a bag of chocolate. Of course, his kids want some.

Mr. Larson is wise enough to get his 15 pieces first. He then divides the

remaining pieces among his 8 kids and each kid ends up with 11 pieces.

How many pieces were in the bag to start with?