If the Price of Good a Increases from $15 to $20

question 256

Multiple Choice

If the price of good A increases from $15 to $20 per unit and quantity demanded falls from 150 to 100 units, then by using the method of average values, we can calculate the absolute price elasticity of demand to be

• A) 2.6.
• B) 0.75.
• C) 1.4.
• D) 2.4.

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