Suppose the price elasticity of demand for tacos is 0.80. If the price of tacos increases by 10 percent, then the quantity demanded of tacos should, ceteris paribus:
a) Decrease by 8 percent.
b) Decrease by 1.25 percent.
c) Increase by 8 percent.
d) Increase by 1.25 percent.
Answer: a) Decrease by 8 percent.
Economics
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