When the Price of a Product Increases by 15 Percent

question 299

Multiple Choice

When the price of a product increases by 15 percent, the quantity demanded decreases by 10 percent. We can therefore conclude that the demand for this product is

• A)elastic.
• B)inelastic.
• C)cross-elastic.
• D)unitary elastic.

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Definitions:

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A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.

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