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Assuming Price Elasticity of Demand Is Reported as an Absolute

Question 70

Multiple Choice

Assuming price elasticity of demand is reported as an absolute value, a price elasticity of one indicates that:


A) the percentage change in quantity demanded will equal the percentage change in price.
B) the percentage change in quantity demanded will equal one.
C) both the percentage change in price and quantity demanded must equal one.
D) the percentage change in quantity demanded and the percentage change in price must sum to one.

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