Multiple Choice
The price of milk at the local grocery store rises by 25%, and the quantity of milk demanded falls by 10%. The absolute value of the price elasticity of demand for milk is _____, and demand is _____.
A) 2.5; elastic
B) 2.5; inelastic
C) 0.4; elastic
D) 0.4; inelastic
Correct Answer:
Verified
Correct Answer:
Verified
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