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Suppose Angel Cake Shop increases the price of sponge cakes from RM10 to RM12. This causes the quantity demanded to fall from 580 units to

Suppose Angel Cake Shop increases the price of sponge cakes from RM10 to RM12. This causes the quantity demanded to fall from 580 units to 500 units monthly.

Using the midpoint approach, calculate the price elasticity of demand for sponge cakes.

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