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Suppose That the Value of the Price Elasticity of Demand

Question 173

Multiple Choice

Suppose that the value of the price elasticity of demand for a product is 0.5 and its price decreases by 10%.What will happen to the quantity demanded?


A) It will increase by 5%.
B) It will increase by 20%.
C) It will decrease by 5%.
D) It will decrease by 20%.
E) It cannot be determined without further information.

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