If the price elasticity of demand is equal to 4, a 1 percent increase in price will cause the quantity demanded to ____ by ____ percent.
A) increase; 1/4
B) decrease; 1/4
C) increase; 4
D) decrease; 25
E) decrease; 4

Name: If the price elasticity of demand is equal to 4, a 1 percent increase in price will cause the quantity demanded to ____ by ____ percent. A) increase; 1/4 B) decrease; 1/4 C) increase; 4 D) decrease; 25 E) decrease; 4
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Question

Quizplus · Accepted Answer

The Answer is E

If the Price Elasticity of Demand Is Equal to 4