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Question
The local baseball stadiumʹs concession stands previously sold hot dogs for 80 cents apiece. At that price, when a baseball fan went to watch a baseball game, he bought 2 hotdogs. But now that the stadium has a ʺdime-a-dog night,ʺ he has purchased 6 hot dogs. What is the approximate value of this individualʹs absolute price elasticity of demand for hot dogs?
A) 0.64
B) 0.80
C) 1.00
D) 1.56
Answer
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