Suppose That in a Month the Price of Tulips Increases

question 73

Multiple Choice

Suppose that in a month the price of tulips increases from $1 to $1.50. At the same time, the quantity of tulips demanded decreases from 200 to 190. The price elasticity of demand for tulips (calculated using the initial value formula) is

• A) 0.1.
• B) 0.5.
• C) 10.
• D) 20.

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