Suppose That When the Price of Water Rises by 30

question 96

Multiple Choice

Suppose that when the price of water rises by 30 percent, the quantity demanded falls by 10 percent. The price elasticity of demand for water is ____________, making water an _______________ good (in this example) .

• A)0.33; inelastic
• B)3.0; elastic
• C)1.0; unit elastic
• D)0.33; elastic

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