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Rania Is Selling Boxes of Cookies Door to Door in Her

Question 105

Multiple Choice

Rania is selling boxes of cookies door to door in her neighbourhood.At a price of $10 per box she sold 40 boxes per day.When the price was reduced to $4 per box she sold 100 boxes per day.Assuming that the demand conditions were unchanged,what is the price elasticity of demand for Rania's cookies?


A) -1.7
B) 0
C) 0.85
D) 1
E) 1.17

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