What is the elasticity of demand for paul newspapers

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Question: Paul owns the only newsstand in town. All the townspeople buy from him and love to come by and talk for a while. They enjoy it so much that if Paul doubles the price of a paper from $1 to $2, the quantity demanded will fall from 100 to 75 papers per week.

a) What is the elasticity of demand for Paul's newspapers (use appropriate sign)?

b) How would you characterize (in economic terms) the demand over that range?

Reference no: EM132196961

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