Dayco Decreased the Price of the Drive Belts That It

question 29

Multiple Choice

Dayco decreased the price of the drive belts that it sells to General Motors by 5 percent and sales of the item grew by 3 percent. Price elasticity of demand for drive belts appears to be:

• A)elastic.
• B)inelastic.
• C)neither elastic nor inelastic.
• D)sensitive to price changes.
• E)none of the answer choices.

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