If the Price of Chocolate-Covered Peanuts Decreases from $1

question 246

Multiple Choice

If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, this indicates that, if other things are unchanged, the price elasticity of demand is:

• A) 0.
• B) -0.5.
• C) -1.
• D) -2.

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