Multiple Choice
Which of the following illustrates elastic demand?
A) A 5% increase in price causes a 2.5% decrease in quantity demanded.
B) A 5% increase in price causes a 10% decrease in quantity demanded.
C) a price elasticity of 0.8
D) a price elasticity of 1.0
E) A 10% increase in price causes a 10% reduction in quantity demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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