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When the Price of Bubble Gum Is $0

Question 21

Multiple Choice

When the price of bubble gum is $0.50,the quantity demanded is 400 packs per day.When the price falls to $0.40,the quantity demanded increases to 600.Given this information and using the midpoint method,we know that the demand for bubble gum is


A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly inelastic.

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