When the Price of Ulcer Medication Increased by $20, the Revenue

question 2

Multiple Choice

When the price of ulcer medication increased by $20, the revenue of a drug company selling the medication increased by $10 million. Thus, it can be said that the company's elasticity of demand is:

• A)equal to zero.
• B)greater than one.
• C)less than one.
• D)infinitely large.
• E)equal to one.