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A bar patron complains that he can no longer visit his neighborhood tavern as often because the price of his favorite beverage went up from
A bar patron complains that he can no longer visit his neighborhood tavern as often because the price of his favorite beverage went up from $4 a glass to $5 a glass. He used to purchase 18 of these beverages per week but now he only purchases 12 of these beverages per week. Using the midpoint formula, calculate the price elasticity of demand. Is this elastic, inelastic or unit elastic demand?
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