If the price declines from $400 to $300 and, as a result, quantity demanded increases from 1100 to 1400, elasticity of demand is: a) 1.78 b) 0.92 c) 1.12 d) 3.42
If the price declines from $400 to $300 and, as a result, quantity demanded increases from 1100 to 1400, elasticity of demand is: a) 1.78 b) 0.92 c) 1.12 d) 3.42
Chapter6: Elasticity
Section: Chapter Questions
Problem 3QP: Prove that price elasticity of demand is not the same as the slope of a demand curve.
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Transcribed Image Text:If the price declines from $400 to $300 and, as a result, quantity demanded increases from 1100 to
1400, elasticity of demand is:
a) 1.78
b) 0.92
c) 1.12
d) 3.42
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