Suppose That the Price of African Safaris Fell from $4,000

question 312

Multiple Choice

Suppose that the price of African safaris fell from $4,000 to $3,200 per person, and, as a result, tour operators reduced the number of trips offered by 25%. Using the midpoint method, the price elasticity of supply for African safaris is

• A) 0.80.
• B) 0.89.
• C) 1.13.
• D) 1.25.

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