Multiple Choice
If the price elasticity of demand for smart watches is 1.4 (dropping the minus sign) , then a 50 percent increase in the price of smart watches will lead to
A) the sale of 200 additional smart watches.
B) the sale of 125 percent fewer smart watches than before.
C) the sale of 70 percent fewer smart watches than before.
D) the sale of 25 percent fewer smart watches than before.
Correct Answer:
Verified
Correct Answer:
Verified
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