Other Things Equal, and Given That the Elasticity of Demand

question 77

Multiple Choice

Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about

• A) 1 percent.
• B) 2 percent.
• C) 5 percent.
• D) 20 percent.

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