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When the Price of Coffee Increases 5%, Quantity Demanded Decreases

Question 95

Multiple Choice

When the price of coffee increases 5%, quantity demanded decreases 10%. The price elasticity of demand for coffee is ________ and total revenue from coffee sales will ________.


A) inelastic; increase
B) inelastic; decrease
C) elastic; increase
D) elastic; decrease

Correct Answer:

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