Multiple Choice
A good has a price elasticity of demand equal to 2.If an increase in supply lowers its price from $1.20 to $0.80,the percentage change in quantity demanded is
A) an increase of 80 percent.
B) a decrease of 80 percent.
C) a decrease of 40 percent.
D) an increase of 2 percent.
E) an increase of 40 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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