If the Price Elasticity of Demand Was 4

question 169

Multiple Choice

If the price elasticity of demand was 4.0 (in absolute terms) , a 10% off sale would lead to:

• A)​a 40% increase in purchases by customers.
• B)​a 40% decrease in purchases by customers.
• C)​a 2.5% increase in purchases by customers.
• D)​a 2.5% decrease in purchases by customers.

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