Multiple Choice
The elasticity of demand for oil is -0.5 and the elasticity of supply is 0.20. If the demand for oil increases 10 percent, what happens to the price of oil?
A) It increases by 14 percent.
B) It decreases by 20 percent.
C) It increases by 8 percent.
D) It increases by 40 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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