If the Price Elasticity of Demand for Smart Watches Is

question 79

Multiple Choice

If the price elasticity of demand for smart watches is 1.4 (dropping the minus sign) , then a 50 percent increase in the price of smart watches will lead to

• A)the sale of 200 additional smart watches.
• B)the sale of 125 percent fewer smart watches than before.
• C)the sale of 70 percent fewer smart watches than before.
• D)the sale of 25 percent fewer smart watches than before.

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