Multiple Choice
An absolute price elasticity of demand equal to 4 indicates that a
A) 4 percent increase in price leads to a 10 percent decrease in quantity demanded.
B) 1 percent increase in price leads to a 4 percent decrease in quantity demanded.
C) 0.4 percent decrease in price leads to a 1 percent increase in quantity demanded.
D) 10 percent decrease in price leads to a 4 percent increase in quantity demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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