Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 46, Problem 6MCQ
To determine
The percentage change for the quantity
Expert Solution & Answer
Answer to Problem 6MCQ
Option d is correct.
Explanation of Solution
Explanation for the correct option:
Given Information:
Percentage change in price is 1%
Price elasticity is 5
d.
There will be a 5% decrease in demand if prices are increased by 1% as its elasticity is 5. Therefore, option d is the correct answer.
Explanation for incorrect options:
Since it is calculations based other options are incorrect.
Economics Concept Introduction
Chapter 46 Solutions
Krugman's Economics For The Ap® Course
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