Multiple Choice
Blossom, Inc., sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs forces Blossom to raise the price to $9, and the firm only manages to sell 460 bottles of perfume. Using the midpoint formula, the price elasticity of demand coefficient is
A) 0.33 and elastic.
B) 3.0 and elastic.
C) 0.33 and inelastic.
D) 3.0 and inelastic.
Correct Answer:
Verified
Correct Answer:
Verified
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