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Pepsi Has Found That Consumers Will Purchase Ten Cases of Pepsi

Question 323

Multiple Choice

Pepsi has found that consumers will purchase ten cases of Pepsi One at $5.00 a case; however,in order to increase demand,they price twelve cases at $4.00 a case.They decide to calculate the _________ and find the answer to be -0.81.


A) marginal revenue
B) price elasticity of demand
C) average demand
D) marginal demand

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