It is given that the initial quantity demanded is 40 units when the price of the good is $10. Now, the price increases by $2 and the quantity demanded falls by 6 units. What is the price elasticity of demand? O 0.6 O -1.25 -0.75 -0.9

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter19: Elasticity
Section19.1: Elasticity: Part 1
Problem 1ST: On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the...
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It is given that the initial quantity demanded is 40 units when the price of the good is $10. Now, the price increases by $2 and the quantity demanded falls by 6
units. What is the price elasticity of demand?
-0.6
-1.25
-0.75
-0.9
Transcribed Image Text:It is given that the initial quantity demanded is 40 units when the price of the good is $10. Now, the price increases by $2 and the quantity demanded falls by 6 units. What is the price elasticity of demand? -0.6 -1.25 -0.75 -0.9
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