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If the Price Elasticity of Demand Is 2 in Absolute

Question 89

Multiple Choice

If the price elasticity of demand is 2 in absolute value, thenwhen 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.(True Answer ) Correct
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:

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