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The Price of a New Electronic Toy Increases from $16

Question 176

Multiple Choice

The price of a new electronic toy increases from $16 to $24 and the quantity demanded decreases from 1,050 to 950 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:


A) ​5.00
B) ​4.00
C) ​0.75
D) ​0.25

Correct Answer:

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