Question
If the price elasticity of demand is equal to 1.2 in absolute value, then a price increase of 20% will result in : Question 16
If the price elasticity of demand is equal to 1.2 in absolute value, then a price increase of 20% will result in :
Question 16 options:
a/ A decrease in quantity demanded of 1.2%.
b/ A decrease in quantity demanded of 16.6%.
c/ A decrease in the quantity demanded of 24%.
d/ A decrease in quantity demanded of 20%.
Don't need explanation. Just which answer a,b,c or d
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Essentials of Econometrics
Authors: Damodar Gujarati, Dawn Porter
4th edition
73375845, 978-0071276078, 71276076, 978-0073375847
