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    Economics Today
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    Exam 19: Demand and Supply Elasticity
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    If the Absolute Price Elasticity of Demand Is 2
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If the Absolute Price Elasticity of Demand Is 2

Question 72

Question 72

Multiple Choice

If the absolute price elasticity of demand is 2.0, a 5 percent decrease in price will increase quantity demanded by


A) 10 percent.
B) 20 percent.
C) 25 percent.
D) 5 percent.

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