If the Price Elasticity of Demand for a Good Is

question 185

Multiple Choice

If the price elasticity of demand for a good is 0.8,then a 12 percent increase in the quantity demanded must be the result of

• A)a 0.06 percent decrease in the price.
• B)a 1.5 percent decrease in the price.
• C)a 9.6 percent decrease in the price.
• D)a 15 percent decrease in the price.

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