Suppose that in a month the price of milk increases from $2 to $3 a gallon. At the same time, the quantity of gallons of milk demanded decreases from 200 to 190. The price elasticity of demand for milk (calculated using the initial value formula) is
A) 0.1.
B) 0.2.
C) 1.
D) 10.

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The Answer of Suppose that in a month the price of milk increases from $2 to $3 a gallon. At the same time, the quantity of gallons of milk demanded decreases from 200 to 190. The price elasticity of demand for milk (calculated using the initial value formula) is
A) 0.1.
B) 0.2.
C) 1.
D) 10.

Suppose That in a Month the Price of Milk Increases