Question
If the coefficient of elasticity of demand with respect to the price of a good is 0.2, then one of the following answers is true:
If the coefficient of elasticity of demand with respect to the price of a good is 0.2, then one of the following answers is true: (a) the decrease in the price of the good in question by 1% has led to an increase in the quantity demanded from that good by 2%; b) increasing the price of the good in question by 10% has caused the quantity of the good demanded to decrease by 2%; (c) a decrease in the price of the good in question by 2% has resulted in an increase in the quantity required of that good that good by 5%; d) the quantity demanded does not change when the price is increased by 0.2%.
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