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Question
The local bakery calculates the price elasticity of demand for its cinnamon rolls to be -1.25. This tells the owners that demand is ________ and price is ________ to the buyer.
a. inelastic; less important than the quantity
b. elastic; more important than the quantity
c. unitary elastic; on the same level as quantity
d. perfectly inelastic; everything
e. perfectly elastic; meaningless
Answer
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