If the Elasticity of Demand for Mothballs Is 0

question 18

Multiple Choice

If the elasticity of demand for mothballs is 0.50, then moving along the demand for mothballs:

• A)​A 20% rise in the price of mothballs will lead to a 10% fall in the quantity of mothballs demanded.
• B)​A 10% rise in the price of mothballs will lead to a 20% fall in the quantity of mothballs demanded.
• C)​A 20% rise in the price of mothballs will lead to a 10% rise in the quantity of mothballs demanded.
• D)​A 10% rise in the price of mothballs will lead to a 20% rise in the quantity of mothballs demanded.

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