Multiple Choice
If the absolute price elasticity of demand is 2, a 10 percent increase in the price will cause
A) the quantity demanded to decrease by 2 percent.
B) the quantity demanded to decrease by 20 percent.
C) the quantity demanded to decrease by 5 percent.
D) the quantity demanded to decrease by 0.2 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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