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Suppose That When the Price of Milk Rises 20%, the Quantity

Question 273

Multiple Choice

Suppose that when the price of milk rises 20%, the quantity demanded of milk falls 10%. Based on this information, what is the approximate absolute price elasticity of demand for milk?


A) 0.05
B) 0.2
C) 0.5
D) 2.0

Correct Answer:

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