If the Price of Good Y Falls from $10 to $8

question 162

Multiple Choice

If the price of Good Y falls from $10 to $8, and the quantity demanded of it rises from 1,000 units to 1,200 units, the price elasticity of demand expressed in absolute value is:

• A) 1.00.
• B) 0.20.
• C) 0.82.
• D) 1.22.

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