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Suppose the Price of Local Cable TV Service Increased From$15

Question 48

Multiple Choice

Suppose the price of local cable TV service increased from$15.00 to$20.00 and as a result the number of cable subscribers decreased from 248,000 to 200,000. Along this portion of the demand curve, using the midpoint method, price elasticity of demand is approximately


A) 1.33.
B) 0.72.
C) 4.
D) 0.6.

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