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Suppose That When the Price of Donuts Rises 10%, the Quantity

Question 111

Multiple Choice

Suppose that when the price of donuts rises 10%, the quantity demanded of donuts falls 3%. Based on this information, what is the approximate absolute price elasticity of demand for donuts?


A) 3.33
B) 0.3
C) 30
D) 1.3

Correct Answer:

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