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Q14. A price elasticity of 1.2 indicates that: a. an item costs 20% more after an increase in demand than before b. a 10% increase
Q14. A price elasticity of 1.2 indicates that: a. an item costs 20% more after an increase in demand than before b. a 10% increase in demand leads to a 12% increase of revenue c. a 1% increase in quantity demanded, leads to a 1.2% decrease in price d. a 1% increase in price, leads to 1.2% decrease in quantity demanded
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