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What Is the Effect of a 10 Percent Price Increase

Question 79

Multiple Choice

What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?


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.

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