If a 2 Percent Increase in the Price of a Good

question 124

Multiple Choice

If a 2 percent increase in the price of a good leads to a 10 percent decrease in the quantity demanded, the price elasticity of demand for the good equals__________ .

• A)5.0
• B)2.0
• C)0.25
• D)0.20

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Definitions:

Product Life Cycle

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