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If the Price of Good a Increases from $15 to $20

Question 256

Multiple Choice

If the price of good A increases from $15 to $20 per unit and quantity demanded falls from 150 to 100 units, then by using the method of average values, we can calculate the absolute price elasticity of demand to be


A) 2.6.
B) 0.75.
C) 1.4.
D) 2.4.

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