A Fall in the Price of Lemons from $10

question 321

Multiple Choice

A fall in the price of lemons from $10.50 to $9.50 per bushel increases the quantity demanded from 19,200 to 20,800 bushels. The price elasticity of demand is

• A) 0.80.
• B) 1.20.
• C) 1.25.
• D) 8.00.

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Definitions:

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