If the price of cappuccino on campus falls from $5 to $3 and the quantity demanded increases from 15 to 20, then the price elasticity of demand is approximately

A) 0.47, which mean cappuccino is inelastic.
B) 0.57, which means cappuccino is inelastic.
C) 1.75, which means cappuccino is elastic.
D) 2.25, which means cappuccino is elastic.


B

Economics

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When a profit-maximizing firm in a competitive price-searcher market is in long-run equilibrium, price equals

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In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

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Economics