Solved

If the Absolute Value of the Price Elasticity of Demand

Question 86

Multiple Choice

If the absolute value of the price elasticity of demand is 2,then a 15% increase in price causes a:


A) 30% increase in quantity demanded
B) 30% decrease in quantity demanded
C) 7.5% increase in quantity demanded
D) 7.5% decrease in quantity supplied
E) 30% increase in income

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: Exhibit 5-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4915/.jpg" alt="Exhibit 5-1

Q16: Suppose the price elasticity of demand for

Q88: For a perfectly elastic demand curve,a 10%

Q109: If supply is perfectly elastic, the supply

Q133: Substitutes are pairs of products with<br>A)positive cross-price

Q140: If the demand curve shifts but the

Q170: It has been suggested that if NHL

Q186: Exhibit 5-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4915/.jpg" alt="Exhibit 5-7

Q193: If an increase in price from $1

Q207: Another word for elasticity is<br>A)responsiveness<br>B)happiness<br>C)bonus<br>D)profit<br>E)surplus