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If the Price Elasticity of Demand for Radios Is 2

Question 111

Multiple Choice

If the price elasticity of demand for radios is 2.5 (dropping the minus sign) , then a 50 percent reduction in the price of radios will lead to


A) the sale of 200 additional radios.
B) the sale of 125 percent more radios than before.
C) the sale of 150 percent more radios than before.
D) the sale of 25 percent more radios than before.

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