Multiple Choice
As the price of bananas fell from $0.60 to $0.40 per pound, the quantity demanded rose from 300 pounds of bananas consumed to 500 pounds of bananas consumed. The price elasticity of demand (using the midpoint method) is
A) 0.80.
B) 1.00.
C) 1.25.
D) 1.50.
Correct Answer:
Verified
Correct Answer:
Verified
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