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If the Price of Suntan Lotion Increases from $6 to $8

Question 476

Essay

If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decreases from 900,000 bottles to 845,000 bottles, using the midpoint method, what is the price elasticity of demand for suntan lotion?

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The price elasticity of demand = (percen...

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