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Suppose we have the following price & quantity data for Huffy Bikes: A    B Price...

Suppose we have the following price & quantity data for Huffy Bikes:

A    B

Price    $65 $100

Quantity Demanded    500,000 bikes 450,000 bikes

a. Please plot points A and B. Then draw a simple demand curve for bikes.

b. When price rises from $65 to $100, what is the price elasticity of demand for bikes?

c. Would you classify this good as relatively elastic or relatively inelastic?

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