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Answer the following questions about price elasticity of demand.
a. The price elasticity of demand for Major League Baseball tickets is -0.50. What happens to the quantity of tickets sold if ticket prices rise by 5%?
b. The price elasticity of demand for fried chicken is -1.12. What happens to expenditures on fried chicken following a price increase?
c. Suppose the demand for insulin is given by QD = 1,000. What is the price elasticity of demand at P = $100?
d. What will happen to the price elasticity of demand if there are more substitute goods available?
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