If the price elasticity of demand is -4.0, a 5 percent decrease in price will increase quantity demanded by 125 percent. O 1.25 percent. O 80 percent. O 20 percent. O 0.8 percent.

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Chapter1: Making Economics Decisions
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If the price elasticity of demand is -4.0, a 5 percent decrease in price will increase
quantity demanded by
125 percent.
O 1.25 percent.
80 percent.
20 percent.
O 0.8 percent.
Transcribed Image Text:Question 2 If the price elasticity of demand is -4.0, a 5 percent decrease in price will increase quantity demanded by 125 percent. O 1.25 percent. 80 percent. 20 percent. O 0.8 percent.
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