Multiple Choice
If the price elasticity of demand for a good is 5.0, then a 10 percent increase in price results in a
A) 0.5 percent decrease in the quantity demanded.
B) 2.5 percent decrease in the quantity demanded.
C) 5 percent decrease in the quantity demanded.
D) 50 percent decrease in the quantity demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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