If the Price Elasticity of Demand for Pineapples Is 0

question 126

Multiple Choice

If the price elasticity of demand for pineapples is 0.75, then a 4 percent increase in the price of pineapples will lead to a:

• A)3 percent decrease in the quantity of pineapples demanded.
• B)3 percent increase in the quantity of pineapples demanded.
• C)0.75 percent decrease in the quantity of pineapples demanded.
• D)0.75 percent increase in the quantity of pineapples demanded.

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