The Price Elasticity of Demand for DVDs Is 2

question 23

Multiple Choice

The price elasticity of demand for DVDs is 2.0. If the price of a DVD increased by 2 per cent, the quantity demanded will _______.

• A) decrease by 1 per cent
• B) decrease by 2 per cent
• C) not change
• D) decrease by 4 per cent

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