Multiple Choice
Suppose that a jewelry store found that when it increased prices by 10 percent, sales revenue increased by 3 percent. Which of the following is true about the price elasticity of demand for the store's goods?
A) Demand is perfectly inelastic.
B) Demand is inelastic, but not perfectly.
C) Demand is perfectly elastic
D) Demand is elastic, but not perfectly.
Correct Answer:
Verified
Correct Answer:
Verified
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