Multiple Choice
If a farmer lowers the price of his product from $15 to $5 and finds that sales increase from 500 to 1000 units per week, then the demand for the farmer's product in this range is (assuming midpoint formula for price elasticity of demand) :
A) price inelastic.
B) price elastic.
C) unit elastic.
D) cross elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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