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As the Price of Bananas Fell from $0

Question 92

Multiple Choice

As the price of bananas fell from $0.60 to $0.40 a pound, the quantity demanded rose from 300 pounds of bananas consumed to 500 pounds of bananas consumed. In this example, demand for bananas is


A) inelastic.
B) unitary elastic.
C) elastic.
D) perfectly elastic.

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