Multiple Choice
What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?
A) Demand is cross-price elastic.
B) Demand is price inelastic.
C) Demand is price elastic.
D) Demand maintains the status quo.
E) Demand results in the income effect.
Correct Answer:
Verified
Correct Answer:
Verified
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