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Recently, in Smalltown, the Price of Twinkies Fell from $0

Question 111

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Recently, in Smalltown, the price of Twinkies fell from $0.80 to $0.70. As a result, the quantity demanded of Ho-Ho's decreased from 120 to 100. What would be the appropriate elasticity to compute? Using the midpoint method, compute this elasticity. What does your answer tell you?

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The appropriate elasticity to compute wo...

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