-The Above Figure Shows the Demand Curve for Movie Rentals

question 199

Multiple Choice

-The above figure shows the demand curve for movie rentals from Blockbuster. If Blockbuster raised its price from $2.50 to $3.00, between these two prices the price elasticity of demand equals

• A) 1.2.
• B) 0.8.
• C) 2.0.
• D) 0.5.

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