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The price of good is $1.20 per unit and annual demand is 800,000 units. Market research indicates that an increase in price of 10 cents per unit will result in a fall in annual demand of 75,000 units. What is the price elasticity of demand measuring the responsiveness of demand over this range of price increase?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M951043

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