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Suppose the price elasticity of demand for your economics textbook is -1. If the publishers lowers the price 5 percent, this will result in: A.
Suppose the price elasticity of demand for your economics textbook is -1. If the publishers lowers the price 5 percent, this will result in:
A. | A 5 percent rise in quantity demanded, and a 5 percent rise in total revenue. | |
B. | A 5 percent rise in quantity demanded, and no change in total revenue. | |
C. | A 50 percent rise in quantity demanded, and a 20 percent rise in total revenue. | |
D. | A 5 percent rise in quantity demanded, and a 20 percent rise in total revenue. | |
E. | A 50 percent rise in quantity demanded (the effect on total revenue is uncertain). |
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