Multiple Choice
If the price elasticity of demand for clothing is 0.64, this implies that
A) a 6.4 percent increase in price the price of clothing leads to a 10 percent decrease in the quantity demanded.
B) a 10 percent increase in the price of clothing leads to a 6.4 percent decrease in the quantity demanded.
C) if there is an increase in the price of clothing the total expenditures on clothing decreases.
D) Both answers A and C are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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