If the Price Elasticity of Demand for a Good Is

question 229

Multiple Choice

If the price elasticity of demand for a good is 0.4,then which of the following events is consistent with a 2 percent decrease in the quantity of the good demanded?

• A)a 0.8 percent increase in the price of the good
• B)a 2.4 percent increase in the price of the good
• C)a 5 percent increase in the price of the good
• D)a 8 percent increase in the price of the good

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