Answered: If the price elasticity of demand…

If the price elasticity of demand coefficient is 2.0 (ignoring the sign), a 10% price increase will cause quantity demanded to decrease by approximately __________%. a. 20 b. 10 c. 5 d. 0.20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the price elasticity of demand coefficient is 2.0 (ignoring the sign), a 10% price increase will cause quantity demanded to decrease by approximately __________%.

a. 20

b. 10

c. 5

d. 0.20

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