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Suppose the Price of Mascara Is $12 and the Quantity

Question 77

Multiple Choice

Suppose the price of mascara is $12 and the quantity demanded is 450. When the price drops to $8, the quantity demanded increases to 550. Using the mid-point method, what is the price elasticity of demand?


A) −0.5
B) −2.0
C) −55
D) −180

Correct Answer:

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