Multiple Choice
If the price elasticity of demand is 2,then a 1 percent fall in price
A) doubles the quantity demanded.
B) decreases the quantity demanded by half.
C) increases the quantity demanded by 2 percent.
D) decreases the quantity demanded by 2 percent.
E) increases the quantity demanded by 0.5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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