Multiple Choice
If the price elasticity of demand is 2 in absolute value, then when the price of Good X rises by 25 percent:
A) the quantity demanded of Good X rises by 50 percent.
B) the quantity demanded of Good X falls by 50 percent.
C) the quantity demanded of Good X rises by 12.5 percent.
D) the quantity demanded of Good X falls by 12.5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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