If the Absolute Value of the Price Elasticity of Demand

question 60

Multiple Choice

If the absolute value of the price elasticity of demand for cell phone service is 3, then if the price of cell phone service increases by 1 percent, quantity demanded would:

• A)increase by 0.33 percent.
• B)decrease by 0.33 percent.
• C)increase by 3 percent.
• D)decrease by 3 percent.

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