If the Price Elasticity of Demand for Good a Is

question 361

Multiple Choice

If the price elasticity of demand for good A is -2, then a 1% increase in

• A) consumer income will result in a 2% decrease in the demand for good A.
• B) consumer income will result in a 2% increase in the demand for good A.
• C) the market price of good A will result in a 2% increase in the quantity demanded of good A.
• D) the market price of good A will result in a 2% decrease in the quantity demanded of good A.

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