If the Price of a Soda Increases from 75¢ to $1.00

question 249

Multiple Choice

If the price of a soda increases from 75¢ to $1.00 and as a result the quantity demanded of sodas decreases from 10 to 9 per week, the elasticity of demand for sodas equals

• A) 2.72.
• B) 0.37.
• C) 0.83.
• D) 1.20.

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