What is the price elasticity of demand of the nail varnish?


A company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles

What is the price elasticity of demand of the nail varnish?
A . -2.0
B . +2.0
C . -0.5
D . +0.5

Answer: B

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