If the elasticity of demand for the latest American Idol album is 1.4, this means
A) few substitutes for the American Idol album exist.
B) a 1% increase in the price leads to a 14% decrease in quantity demanded.
C) a 10% decrease in the price leads to a 140% increase in quantity demanded.
D) a 5% increase in the price leads to a 7% decrease in quantity demanded.
Correct Answer:
Verified
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