When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for candy bars is:

The demand for candy bars is inelastic

Explanation:

The midpoint rule calculate the price elasticity of demand as percentage change in quantity divided by the percentage change in price:

% change in quantity

The quantity demanded increased from 500 to 600. We have

% change in price

The price changed from 1 dollar to 0.8 dollars.

Price elasticity if demand is

The negative sign tells us that there is an inverse relationship between price and quantity demanded.

Since 0.82 is less than 1, the demand for candy bars is inelastic

answertrue;