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The Price Elasticity of Demand for Bottled Water in Yorkshire

Question 2

Multiple Choice

The price elasticity of demand for bottled water in Yorkshire is - 0.2, while the price elasticity of demand for bottled water in London is - 1.2. In other words, demand in Yorkshire is __________ and demand in Lonon is ___________ .


A) elastic; unitarily elastic
B) inelastic; unitarily inelastic
C) inelastic; elastic
D) elastic; inelastic

Correct Answer:

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