At a price of $400, consumers demand 1,500 units of a computer. When the price of the computer increases to $440, quantity demanded drops to 1,200 units. The price elasticity of demand for the computer is:

a. 2.6.
b. 2.2.
c. 2.1.
d. 2.3.


d

Economics

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A firm in a perfectly competitive market faces a demand curve that is

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