Suppose That the Value of the Price Elasticity of Demand

question 93

Multiple Choice

Suppose that the value of the price elasticity of demand for a product is 2 and its price increases by 16%.What will happen to the quantity demanded?

• A)It will increase by 8%.
• B)It will increase by 32%.
• C)It will decrease by 8%.
• D)It will decrease by 32%.
• E)It cannot be determined without further information.

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