Suppose the Price Elasticity of Demand for Oil Is 0

question 474

Multiple Choice

Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 percent, the quantity of oil supplied must be increased by

• A) 200 percent.
• B) 20 percent.
• C) 2 percent.
• D) 0.2 percent.

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