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Suppose the Market Price for Wheat Changes, and We Move

Question 135

Multiple Choice

Suppose the market price for wheat changes, and we move from point A to point B on the wheat demand curve. If the price elasticity of wheat demand was -0.3 at point A and -0.4 at point B, what is a plausible value for the arc elasticity of demand for wheat between points A and B?


A) -0.25
B) -0.35
C) -0.45
D) -0.70

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