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Suppose That as the Price of Y Falls from $12

Question 109

Multiple Choice

Suppose that as the price of Y falls from $12 to $10, the quantity of Y demanded increases from 500 to 600. Then the absolute value of the price elasticity (using the midpoint formula) is approximately


A) 50.
B) 1.2.
C) 1.
D) 0.83.

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