Multiple Choice
What is the effect of a 10 percent price increase on quantity demanded if elasticity is larger than zero but less than 1?
A) Quantity demanded does not change.
B) Quantity demanded drops by less than 10 percent.
C) Quantity demanded drops by 10 percent.
D) Quantity demanded drops by more than 10 percent.
E) Quantity demanded drops to 0.
Correct Answer:
Verified
Correct Answer:
Verified
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