Multiple Choice
The price elasticity of demand for widgets is 0.8. Assuming no change in the demand curve for widgets, an increase in sales of 16 percent implies a(n)
A) 1 percent reduction in price.
B) 12 percent reduction in price.
C) 20 percent reduction in price.
D) 40 percent reduction in price.
Correct Answer:
Verified
Correct Answer:
Verified
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