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If the Price of Apples Decreases by 2 Percent and Causes

Question 57

Multiple Choice

If the price of apples decreases by 2 percent and causes apple consumption to increase by 4 percent, the price elasticity of demand is ____, indicating the demand is ____.


A) 2; elastic
B) 2; inelastic
C) 0.5; elastic
D) 0.5; inelastic

Correct Answer:

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