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Last Year the Price of Corn Was $3 Per Bushel

Question 147

Multiple Choice

Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels. Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.)


A) 1
B) 0.47
C) 2.14
D) 0.29

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