Suppose the Quantity Demanded of Ice Cream Cones Increases from 400

question 241

Multiple Choice

Suppose the quantity demanded of ice cream cones increases from 400 to 425 cones a day when the price is reduced from $1.50 to $1.25. In this situation, the elasticity of demand, calculated using the average method, is

• A) 3.
• B) 1.
• C) 0.33.
• D) 1.33.

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