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If a 1 Percent Decrease in the Price of a Good

Question 106

Multiple Choice

If a 1 percent decrease in the price of a good leads to a 0.50 percent increase in the quantity demanded, the price elasticity of demand for the good equals________ .


A) 0.75
B) 2.0
C) 1.0
D) 0.50

Correct Answer:

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