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You Are the Owner of a Firm That Makes Generic

Question 83

Multiple Choice

You are the owner of a firm that makes generic paper products. You estimate the income elasticity for your paper towels to be - 1.5. An economic recession will have which of the following effects on the demand for your paper products?


A) The demand will increase.
B) The demand will decrease by 15 percent.
C) The demand will decrease.
D) There will be no effect on demand.

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