Multiple Choice
If the elasticity of demand for mothballs is 0.50, then moving along the demand for mothballs:
A) A 20% rise in the price of mothballs will lead to a 10% fall in the quantity of mothballs demanded.
B) A 10% rise in the price of mothballs will lead to a 20% fall in the quantity of mothballs demanded.
C) A 20% rise in the price of mothballs will lead to a 10% rise in the quantity of mothballs demanded.
D) A 10% rise in the price of mothballs will lead to a 20% rise in the quantity of mothballs demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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