A Fall in the Price of a Good from $10

question 130

Multiple Choice

A fall in the price of a good from $10.50 to $9.50 results in an increase in the quantity demanded from 18,800 to 21,200 units. The price elasticity of demand is

• A)0.8.
• B)1.25.
• C)1.2.
• D)8.0.
• E)2.4.

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