When the price of rulers rises from$2 to$3, the quantity demanded falls from 500 to 480 per
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Question:
When the price of rulers rises from$2 to$3, the quantity demanded falls from 500 to 480 per week. This implies that the price elasticity of demand is equal to which of thefollowing?
A.
5/49 = 0.102
B.
49/5 = 9.8
C.
1/20 = 0.05
D.
20
When the price of rulers rises from$2 to$3, the quantity demanded falls from 500 to 480 per week. Because the price increase results in __________ in salesrevenue, demand must be________ in that price range.
A.
adecrease; inelastic
B.
anincrease; inelastic
C.
adecrease; elastic
D.
anincrease; elastic
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