Multiple Choice
Suppose that, as the price of product A falls from $5 to $4, the quantity of A demanded increases from 2,000 to 6,000 units. In this case, what is the elasticity of demand, using the midpoint formula?
A) 0.9
B) 0.4
C) 4.5
D) 1.6
E) 3.0
Correct Answer:
Verified
Correct Answer:
Verified
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