The price of milk at the local grocery store is cut by 10%. The quantity of milk demanded increases by 5% in response to this price cut. What is the absolute value of the price elasticity of demand for milk?

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 24SQ: Suppose that when price is 10, quantity supplied is 20 units, and when the price is 6, the quantity...
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The price of milk at the local grocery store is cut by 10%. The quantity of milk demanded increases by
5% in response to this price cut. What is the absolute value of the price elasticity of demand for milk?
02
O-2
O 0.5
O-0.5
Transcribed Image Text:The price of milk at the local grocery store is cut by 10%. The quantity of milk demanded increases by 5% in response to this price cut. What is the absolute value of the price elasticity of demand for milk? 02 O-2 O 0.5 O-0.5
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