Multiple Choice
If the price elasticity of demand is 2 in absolute value, then when the price of Good X rises by 25 percent:
A) the quantity demanded of it rises by 50 percent.
B) the quantity demanded of it falls by 50 percent.
C) the quantity demanded of it rises by 12.5 percent.
D) the quantity demanded of it falls by 12.5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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