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Assume the Price Elasticity of Demand for JT Chip Co

Question 12

Multiple Choice

Assume the price elasticity of demand for JT Chip Co.chips is 4.0.If the company decreases the price of each bag of chips from $1.89 to $1.49,the number of bags sold will


A) Decrease by 78 percent.
B) Increase by 95 percent.
C) Increase by 48 percent.
D) Increase by 78 percent.

Correct Answer:

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