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If an Increase in the Price of a Product from $1

Question 160

Multiple Choice

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is


A) elastic
B) inelastic
C) unit elastic
D) suggestive of an inferior good
E) equal to -20

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