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Measuring the Price of Gasoline in Dollars Per Quart, an Economist

Question 33

Multiple Choice

Measuring the price of gasoline in dollars per quart, an economist calculates the price elasticity of demand to be 1. What would the price elasticity of demand be if the economist had chosen to measure the price in dollars per gallon?


A) 1
B) 4
C) .25
D) .5

Correct Answer:

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