If the local pizzeria raises the price of a medium pizza from $6 to $1
If the local pizzeria raises the price of a medium pizza from $6 to $10 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is:
A) 0.67.
B) 1.5.
C) 2.0.
D) 3.0.
ANSWER
D
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