If the Price Elasticity of Demand for a Good Is

question 9

Multiple Choice

If the price elasticity of demand for a good is 0.5,then a 5 percent increase in price results in a

• A)0.1 percent decrease in the quantity demanded.
• B)1 percent decrease in the quantity demanded.
• C)2.5 percent decrease in the quantity demanded.
• D)10 percent decrease in the quantity demanded.

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