Question 1 1. If the absolute price elasticity of demand is 4.0, a 5 percent decrease in price will increase quantity demanded by Answer a. 10 percent. b. 20 percent. c. 25 percent. d. 8 percent. 10...

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Question 1
1.
If the absolute price elasticity of demand is 4.0, a 5 percent decrease in price will increase quantity demanded by
Answer
a.
10 percent.
b.
20 percent.
c.
25 percent.
d.
8 percent.
10 points
Question 2
1.
If a seller lowers the price of a product when demand is price inelastic, the seller can expect revenues to
Answer
a.
rise.
b.
fall.
c.
stay the same.
d.
either rise or fall, but it is impossible to determine which.
10 points
Question 3
1.
When the calculated elasticity of demand is -0.45, demand is
Answer
a.
perfectly inelastic.
b.
elastic.
c.
unitary elastic.
d.
inelastic.

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Answered Same Day Dec 22, 2021

Solution

Robert answered on Dec 22 2021

121 Votes

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Question 1 1. If the absolute price elasticity of demand is 4.0, a 5 percent decrease in price will increase quantity demanded by Answer a. 10 percent. b. 20 percent. c. 25 percent. d. 8 percent. 10...

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