If the Price Elasticity of Demand for a Good Is

question 171

Multiple Choice

If the price elasticity of demand for a good is 2,then a 10 percent increase in the price of that good ________ the quantity demanded by ________ percent.

• A) increases; 20
• B) decreases; 2
• C) decreases; 10
• D) decreases; 20
• E) increases; 8

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