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A Price Elasticity of Demand of 0

Question 65

Multiple Choice

A price elasticity of demand of 0.3 means a


A) 10% increase in the price results in a 3% increase in quantity demanded.
B) 3% increase in the price results in a 3% decrease in quantity demanded.
C) 10% increase in the price results in a 3% decrease in demand.
D) 10% increase in the price results in a 3% decrease in quantity demanded.
E) 10% increase in the price results in a 3% increase in demand.

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