Multiple Choice
Blossom, Inc., sells 900 bottles of perfume a month when the price is $10. A huge increase in resource costs forces Blossom to raise the price to $12, and the firm only manages to sell 750 bottles of perfume. Using the midpoint formula, the price elasticity of demand coefficient is
A) 1 and elastic.
B) 1.4 and elastic.
C) 1 and unit elastic.
D) 1.67 and elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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