If the Price Elasticity of Demand for a Good Is

question 458

Multiple Choice

If the price elasticity of demand for a good is 0.25,then a 20 percent decrease in price results in a

• A) 0.0125 percent increase in the quantity demanded.
• B) 4 percent increase in the quantity demanded.
• C) 5 percent increase in the quantity demanded.
• D) 80 percent increase in the quantity demanded.

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