Multiple Choice
If the price elasticity of demand coefficient for herbal tea is estimated to be 0.5, what would a 10 percent decrease in price likely lead to?
A) a 10 percent decrease in the quantity of herbal tea demanded
B) a 5 percent decrease in the quantity of herbal tea demanded
C) a 10 percent increase in the quantity of herbal tea demanded
D) a 5 percent increase in the quantity of herbal tea demanded
Correct Answer:
Verified
Correct Answer:
Verified
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