Multiple Choice
Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and as a result, the quantity of the dolls sold increases by 25 percent. This indicates that the price elasticity of demand for the dolls over this range is:
A) 2.5.
B) 0.4.
C) 0.5.
D) 5.0.
Correct Answer:
Verified
Correct Answer:
Verified
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