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Suppose an Increase in Demand Causes the Price to Increase

Question 152

Multiple Choice

Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800.Using the midpoint method,the elasticity of supply equals


A) 0.86.
B) 1.17.
C) 2.74.
D) 0.68.
E) None of the above answers is correct.

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