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Unformatted text preview: v) C. (i),(iii) and (iv) D. (i), (ii), (iii) and (iv) E. Abstain The following information is relevant for Question 4. Nando’s ¼ chickens increased in price from R10.00 to R 11.00 per portion from May to June in 2007, and as a result, their revenue increased by 5%. 4. What is the original price elasticity of demand, and its interpretation? [Pen. 0] A. ε = ‐0.41 which is inelastic, and the price increase resulted in an decrease in the quantity of ¼ chickens demanded B. ε = ‐2.44 which is inelastic, and the price increase resulted in a decrease in the quantity of ¼ chickens demanded C. ε = ‐0.41 which is elastic, and the price increase resulted in a decrease in the quantity of ¼ chickens demanded D. ε = ‐2.44 which is elastic, and the price increase resulted in a decrease in the quantity of ¼ chickens demanded E. Abstain 4 Consider the following graph which refers to questions 5 and 6. Good X is represented on the X‐Axis and good Y is represented on the Y‐Axis. 5. Consider the following st...
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This note was uploaded on 05/23/2011 for the course ECON 203 taught by Professor Jules during the Spring '11 term at University of Cape Town.

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