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One Guy's Pizza Advertising Expenditures Are $1,200 and Sales Are

Question 113

Multiple Choice

One Guy's Pizza advertising expenditures are $1,200 and sales are $30,000. When the advertising expenditure increases to $1,400, pizza sales increase to $32,000. The arc advertising elasticity of demand is approximately:


A) 0.
B) 0.1.
C) 0.4.
D) 2.5.
E) 12.5.

Correct Answer:

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