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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