Exhibit 5-2 Price and quantity demanded data
Price
Quantity Demanded
5
20
4
25
3
30
2
35
1
40
Using Exhibit 5-2, what is the price elasticity of demand when the price falls from five dollars to four?
A. 1.
B. 1.25.
C. 0.8.
D. 2.0.
Answer: A
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