For product XYZ, the price elasticity of demand has an absolute value of 3.5.This means that quantity demanded will increase by
A) 1 percent for each 3.5 percent decrease in price, ceteris paribus.
B) 1 unit for each $3.50 decrease in price, ceteris paribus.
C) 3.5 percent for each 1 percent decrease in price, ceteris paribus.
D) 3.5 units for each $1 decrease in price, ceteris paribus.
Correct Answer:
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Q2: If the price elasticity of demand is
Q6: Price elasticity of demand shows how
A)To compute
Q7: Price elasticity looks at
A) The law of
Q8: Price elasticity of demand refers to
A)How responsive
Q9: When demand is elastic,the absolute number for
Q10: To find the average percentage change in
Q11: If the elasticity of demand is 3,and
Q13: Technically the elasticity number is negative because
A)When
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