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Suppose the Price Elasticity of Demand for Some Good Is

Question 43

Multiple Choice

Suppose the price elasticity of demand for some good is 1.4.A 10% increase in the price of the good results in


A) a 1.4% decrease in the quantity demanded.
B) a 1.4% increase in the quantity demanded.
C) a 14% increase in the quantity demanded.
D) a 14% decrease in the quantity demanded.
E) There is not enough information to answer this question.

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