If the Price of Apples Decreases by 2 Percent and Causes

question 57

Multiple Choice

If the price of apples decreases by 2 percent and causes apple consumption to increase by 4 percent, the price elasticity of demand is ____, indicating the demand is ____.

• A) 2; elastic
• B) 2; inelastic
• C) 0.5; elastic
• D) 0.5; inelastic

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Definitions:

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