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If the Price of Tacos Increases from $1 to $2

question 63

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If the price of tacos increases from $1 to $2 and customers decrease their consumption from 10 tacos to 8 tacos,what is the price elasticity of demand (by the midpoint method) ?


Definitions:

Ratio

A ratio indicating how often one number can encompass or be encompassed by another value.

Unknown Quantities

Refers to amounts or numbers that are not specifically known or determined.

Proportion

An installment, section, or count contemplated in proportion to its total mass.

Market Share

The portion of a market controlled by a particular company or product.

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