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Suppose the price of local cable TV service increased from$18.50 to$21.20 and as a result the number of cable subscribers decreased from 400,000 to 320,000.

Suppose the price of local cable TV service increased from$18.50 to$21.20 and as a result the number of cable subscribers decreased from 400,000 to 320,000. Along this portion of the demand curve, using the midpoint method, price elasticity of demand is approximately

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0.61.
1.57.
2.3.
0.8.

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