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Question
At higher prices, the price elasticity of demand is likely to be ________, whereas it is likely to be ________ at lower prices.
a. perfectly elastic; perfectly inelastic
b. elastic; inelastic
c. inelastic; elastic
d. perfectly inelastic; perfectly elastic
e. unitary elastic; elastic
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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