If the Absolute Price Elasticity of Demand Is 0

question 254

Multiple Choice

If the absolute price elasticity of demand is 0.2, a 5 percent decrease in the price will cause

• A) the quantity demanded to increase by 1 percent.
• B) the quantity demanded to increase by 10 percent.
• C) the quantity demanded to increase by 0.25 percent.
• D) the quantity demanded to increase by 2.5 percent.

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