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If the Price of Chocolate-Covered Peanuts Decreases from $1

Question 325

Multiple Choice

If the price of chocolate-covered peanuts decreases from $1.15 to $0.90 and the quantity demanded increases from 0 bags to 400 bags, then the price elasticity of demand (using the midpoint method) is:


A) 0.5.
B) 1.
C) 2.
D) greater than 2.

Correct Answer:

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