Multiple Choice
If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
A) a rise in price of 0.5 percent
B) a rise in price of 2 percent
C) a fall in price of 0.5 percent
D) a fall in price of 2 percent
Correct Answer:
Verified
Correct Answer:
Verified
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