Multiple Choice
Which one of the following illustrates an elastic demand?
A) A 10 percent rise in price leads to a 5 percent decrease in quantity demanded.
B) A 10 percent rise in price leads to a 20 percent decrease in quantity demanded.
C) A price elasticity of demand equal to 0.2.
D) A price elasticity of demand equal to 1.0.
E) A price elasticity of demand equal to zero.
Correct Answer:
Verified
Correct Answer:
Verified
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