Rania is selling boxes of cookies door to door in her neighbourhood. At a price of $10 per box she sold 40 boxes per day. When the price was reduced to $4 per box she sold 100 boxes per day. Assuming that the demand conditions were unchanged, what is the price elasticity of demand for Rania's cookies?
A) -1.7
B) 1.17
C) 1
D) 0
E) 0.85
Ans: C) 1
Economics
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