Multiple Choice
Assume the price elasticity of demand for JT Chip Co.chips is 4.0.If the company decreases the price of each bag of chips from $1.89 to $1.49,the number of bags sold will
A) Decrease by 78 percent.
B) Increase by 95 percent.
C) Increase by 48 percent.
D) Increase by 78 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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