When the Price of Peanut Butter Rises by 4 Percent

question 99

Multiple Choice

When the price of peanut butter rises by 4 percent, total revenue decreases by 8 percent. The demand for peanut butter

• A)is elastic.
• B)is inelastic.
• C)is unit elastic.
• D)has a price elasticity equal to 1/2.
• E)has a price elasticity equal to 2.

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