Suppose the price elasticity of demand for beef is about 1.6. Other things equal, this means that
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Suppose the price elasticity of demand for beef is about 1.6. Other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to
Multiple Choice
decrease by approximately 8 percent.
decrease by approximately 12.5 percent.
decrease by approximately 32 percent.
increase by approximately 0.08 percent.
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