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An elasticity of what would be required to offset a 12.5% price reduction in a 40% contribution margin situation? 1) -3.33 2) -2.00 3) -1.00

An elasticity of what would be required to offset a 12.5% price reduction in a 40% contribution margin situation?

1)

-3.33

2)

-2.00

3)

-1.00

4)

-3.64

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