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If Elasticity for a Product Is 2 and Supply Decreases

Question 133

Multiple Choice

If elasticity for a product is 2 and supply decreases by 10 percent,what was the percent price change for this product?


A) an increase of 2 percent
B) a decrease of 2 percent
C) an increase of 10 percent
D) a decrease of 5 percent
E) an increase of 5 percent

Correct Answer:

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