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Suppose That When the Price of Cereal Rises 10 Percent,the

Question 160

Multiple Choice

Suppose that when the price of cereal rises 10 percent,the quantity demanded of cereal falls by 5 percent.Based on this information,what is the approximate price elasticity of demand for cereal?


A) 0.5
B) -0.5
C) 2.0
D) -2.0
E) 0

Correct Answer:

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