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Suppose a toy company cuts the price of its dolls by 1 0 percent, and as a result, the quantity of dolls sold increases by

Suppose a toy company cuts the price of its dolls by 10 percent, and as a result, the quantity of dolls sold increases by 25 percent. This indicates that the price elasticity of demand for dolls over this range is

Group of answer choices

2.5.

0.4.

5.0.

0.5.  Murray is given the choice between simply having $50 for certain, or flipping a coin and if it is heads, he gets $100, if it is tails he gets $0.  If Murray chooses the $50, an economist would say Murray's preferences toward risk are

Group of answer choices

risk averse

risk certain

risk neutral

risk loving

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