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If the Price Elasticity of Demand for a Good Is

Question 97

Multiple Choice

If the price elasticity of demand for a good is 0.3,then a 20 percent decrease in price results in a


A) 0.015 percent increase in the quantity demanded.
B) 0.6 percent increase in the quantity demanded.
C) 6 percent increase in the quantity demanded.
D) 66 percent increase in the quantity demanded.

Correct Answer:

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