If price elasticity of demand for a good is 2.0, this implies that consumers would
A) buy twice as much of the good if price falls by 10 per cent.
B) require a 2 per cent cut in price to raise quantity demanded of the good by 1 per cent.
C) buy 2 per cent more of the good in response to a 1 per cent cut in price.
D) require at least a R2 increase in price before showing any response to the price increase.
Correct Answer:
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