Multiple Choice
The Cozy Chair Company believes it can sell 200 chairs at $200 per chair or 300 chairs at $150 per chair. Using the midpoint formula, what do they think is the price elasticity of demand?
A) 2.5.
B) 1.4.
C) 0.7.
D) 0.5.
Correct Answer:
Verified
Correct Answer:
Verified
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