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Question
In the accompanying table, assume that the price of ice skates increases from $10 to $20 per pair. Using the midpoint method, what is the price elasticity of demand for ice skates for hockey players?
| Price of Ice Skates | Quantity Demanded (hockey players) | Quantity Demanded (recreational skaters) |
| $10 | 95 | 70 |
| $20 | 85 | 60 |
| $40 | 75 | 45 |
| $50 | 65 | 25 |
| $60 | 60 | 10 |
a. - 6.00
b. 0.67
c. 0.11
d. - 0.16
e. 3.00
Answer
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