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If the Price of Good a Increases from $15 to $20

Question 60

Multiple Choice

If the price of good A increases from $15 to $20 per unit and quantity demanded falls from 1500 to 1000 units, then by using the method of average values, we can calculate the absolute price elasticity of demand to be


A) 2.6.
B) 0.75.
C) 1.4.
D) 2.4.

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