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If the Price Elasticity of Demand for a Good Is

Question 185

Multiple Choice

If the price elasticity of demand for a good is 0.8,then a 12 percent increase in the quantity demanded must be the result of


A) a 0.06 percent decrease in the price.
B) a 1.5 percent decrease in the price.
C) a 9.6 percent decrease in the price.
D) a 15 percent decrease in the price.

Correct Answer:

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