Multiple Choice
If the price elasticity of demand coefficient equals 2 then:
A) a 7 percent decrease in the price will result in a 14 percent decrease in the quantity demanded.
B) a price decrease will increase total revenue.
C) the good has an inelastic demand.
D) there is likely few substitutes, a short time period under consideration, or this good accounts for a relatively small percentage of consumers' budgets.
Correct Answer:
Verified
Correct Answer:
Verified
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