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Suppose the price of local cable TV service increased from $28.30 to $29.90 and as a result the number of cable subscribers decreased from250,000 to
Suppose the price of local cable TV service increased from $28.30 to $29.90 and as a result the number of cable subscribers decreased from250,000 to 225,000. Along this portion of the demand curve, using the midpoint method, price elasticity of demand is approximately
A) 0.52
B) 2.2
C)1.26
D) 0.9
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