Suppose the Own Price Elasticity of Demand for Good X

question 119

Multiple Choice

Suppose the own price elasticity of demand for good X is −0.5,and the price of good X increases by 10 percent.We would expect the quantity demanded of good X to:

• A) increase by 5 percent.
• B) increase by 20 percent.
• C) decrease by 5 percent.
• D) decrease by 20 percent.

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