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Suppose the Company That Owns the Vending Machines on Your

Question 21

Multiple Choice

Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. They then notice that they are selling approximately 15 percent fewer sodas. The price elasticity of demand for sodas from the campus vending machines, therefore, is:


A) inelastic.
B) unit elastic.
C) elastic.
D) infinite.

Correct Answer:

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