Multiple Choice
A decrease in the supply of sugar increases the price of sugar from $1.00 a packet to $1.25 a packet. The quantity decreases from 100 packets a day to 80 packets a day. The price elasticity of demand of sugar is
A) 0.75.
B) 0.5.
C) 1.0.
D) 1.25.
Correct Answer:
Verified
Correct Answer:
Verified
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