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The Price of a Dozen Eggs Falls from $2

Question 139

Multiple Choice

The price of a dozen eggs falls from $2.50 to $1.50. In response to the price change, quantity demanded for eggs increases by 30%. The absolute value of the price elasticity of demand for eggs is _____, and the price elasticity of demand is _____.


A) 1.33; elastic
B) 1.33; inelastic
C) 0.75; elastic
D) 0.75; inelastic

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