Having worked for many of the firms in the petroleum industry, you know that the price elasticity of demand for a representative firm is about -1.25.Moreover, a recent report from an economist in your office revealed that the price elasticity of demand for the petroleum products sold by your firm is -1.5.Based on this information you know that Rothschild index is
A) 0.833.
B) 1.20.
C) -1.20.
D) -0.833.
Correct Answer:
Verified
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