Multiple Choice
Americans consume 126 grams of sugar per day. Suppose that a sugar tax raises the retail price of sugar from US$2.79 to US$3.39 per pound, and reduces consumption to 120 grams per day. What is the own-price elasticity of demand?
A) -0.23.
B) -0.05.
C) -0.215.
D) -43.
Correct Answer:
Verified
Correct Answer:
Verified
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