Multiple Choice
If the price elasticity of demand is 0.5,then a 10% increase in price results in a
A) 50% reduction in quantity demanded.
B) 5% increase in quantity demanded.
C) 5% decrease in total revenues.
D) 5% decrease in quantity demanded.
E) 0.5% decrease in quantity demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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