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The Price of Notebooks Is $5, and at That Price

Question 218

Multiple Choice

The price of notebooks is $5, and at that price consumers demand 12 notebooks. If the price rises to $7, consumers will decrease consumption to 4 notebooks. Using the midpoint formula, what is the price elasticity of demand for notebooks?


A) 0.33
B) 3
C) 0.17
D) 6

Correct Answer:

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