If the price elasticity of demand for a good is 1.4, then a 14 percent increase in the quantity demanded must be the result of

a. a 0.1 percent decrease in the price.
b. a 1 percent decrease in the price.
c. a 10 percent decrease in the price.
d. a 19.6 percent decrease in the price.

c

Economics

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Specialization and exchange develop under conditions of

A) massive ignorance. B) a total conflict of interests. C) coercion and exploitation. D) none of the above.

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A good that has social costs that are equal to private costs has a price that is

A) too high. B) too low. C) just right. D) equal to marginal cost.

Economics