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Paramount Coffee estimates that the elasticity of demand for its coffee is -1.10.If Paramount Coffee decreases the price of its coffee by 5% then: a.Quantity

Paramount Coffee estimates that the elasticity of demand for its coffee is -1.10.If Paramount Coffee decreases the price of its coffee by 5% then:

a.Quantity demanded will decrease by 5.5% and total revenue will decrease.

b.Quantity demanded will decrease by 5.5% and total revenue will increase.

c.Quantity demanded will increase by 0.22% and total revenue will increase.

d.Quantity demanded will decrease by 22% and total revenue will decrease.

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