If the price of Moonlight massage oil decreases from $3 to $2.50 and, as a result, total revenue increases from $6,000 to $7,500, what is the elasticity of demane O 22. O 1.22. O 0.55. O 1.67, O 0.22.

If the price of Moonlight massage oil decreases from $3 to $2.50 and, as a result, total revenue increases from $6,000 to $7,500, what is the elasticity of demane O 22. O 1.22. O 0.55. O 1.67, O 0.22.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 13P: A movie production company faces a linear demand curve for its film, and it seeks to maximize total...

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Question

If the price of Moonlight massage oil decreases from $3 to $2.50 and, as a result, total revenue increases from $6,000 to $7,500, what is the elasticity of demand.
O 22.
O 1.22.
O 0.55.
O 1.67.
O 0.22.

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