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If the Price Elasticity of Demand for a Product Is

Question 291

Multiple Choice

If the price elasticity of demand for a product is 1.5, then a price cut from$3.00 to$2.70 will


A) increase the quantity demanded by about 1.5 percent.
B) decrease the quantity demanded by about 1.5 percent.
C) increase the quantity demanded by about 15 percent.
D) increase the quantity demanded by about 30 percent.

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