The Price of a New Toy Increases from $5 to $7

question 145

Multiple Choice

The price of a new toy increases from $5 to $7 and the quantity demanded decreases from 12,000 to 6,000 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:

• A)​0.5, indicating relatively elastic demand.
• B)​0.5, indicating relatively inelastic demand.
• C)​2.0, indicating relatively elastic demand.
• D)​2.0, indicating relatively inelastic demand.

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The general populace or community at large, often in the context of societal or governmental matters.

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A branch of law dealing with disputes between individuals or organizations, typically resolved through compensation or other remedies.

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