(Figure: Interpreting Price Changes) Based on the Graph, If the Price

question 369

Multiple Choice

(Figure: Interpreting Price Changes) Based on the graph, if the price of shoes increases from $40 to $80 (from point d to point b) , the absolute value of the price elasticity of demand (using the midpoint method) is

• A) 0.66.
• B) 1.
• C) 1.5.
• D) 0.75.

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