If the Price of Pepsi-Cola Increases from 40 Cents to 50

question 77

Multiple Choice

If the price of Pepsi-Cola increases from 40 cents to 50 cents per bottle and the quantity demanded decreases from 100 bottles to 50 bottles, then according to the averaging equation, the value of price elasticity of demand for Pepsi-Cola is:

• A) 0.5.
• B) 0.25.
• C) 1.
• D) 3.
• E) 2.

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