When the price of ulcer medication increased by $20 per 100 tablets, a drug company's revenue increased by $10 million. What must its elasticity of demand coefficient be (in absolute terms)? zero less than one greater than one infinitely large

When the price of ulcer medication increased by $20 per 100 tablets, a drug company's revenue increased by $10 million. What must its elasticity of demand coefficient be (in absolute terms)? zero less than one greater than one infinitely large

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 23SQ: If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly...

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Question

When the price of ulcer medication increased by $20 per 100 tablets, a drug company's revenue increased by $10 million. What must its elasticity of demand coefficient be (in absolute terms)?

	zero
	less than one
	greater than one
	infinitely large

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