The price-elasticity-of-demand coefficient for herbal tea is estimated to be equal to 0.5. It is expected, therefore,

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The price-elasticity-of-demand coefficient for herbal tea is estimated to be equal to 0.5. It is expected, therefore, that a 10 percent decrease in price would lead to _____________ in the quantity of herbal tea demanded.

a. a 5 percent decrease

b. a 5 percent increase

c. a 10 percent decrease

d. a 10 percent increase

e. a 0.5 percent increase

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