Suppose that the own-price elasticity for Ragu spaghetti sauce is -1.25. Which of the following is (are) true?

A) The demand for Ragu spaghetti sauce is unitary elastic.
B) A 4% increase in price leads to a 5% decrease in quantity demanded.
C) A 10% decrease in price leads to an 8% increase in quantity demanded.
D) None of the above.


B) A 4% increase in price leads to a 5% decrease in quantity demanded.

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