If the price of a cola increased by 10% and consumers responded by purchasing 20% less cola, the absolute value of price elasticity of demand for cola would be
A. 1.2.
B. 0.20.
C. 0.5.
D. 2.
Answer: D
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Price for a 27 TV = $450. Consumers buy 1000 of them, prices rises to $550 by 600 of them. What is the price elasticity of demand in this range?
What will be an ideal response?
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A) St. Louis, Missouri B) Richmond, Virginia C) Atlanta, Georgia D) San Francisco, California E) all of the above
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