1.)The elasticity of supply for a product will be 2 if: a.)A 1 percent decrease in price causes a 2 percent decrease in quantity supplied b.)A 1 percent decrease in the price causes a 0.2 percent decrease in quantity supplied c.)A 2 percent decrease in price causes a 1 percent decrease in quantity supplied d.)A 2 percent decrease in price causes a 2 percent decrease in quantity supplied 2.)Sony is considering a 10 percent price reduction on its color television sets. If the price-elasticity coefficient for the sets in this price range is 0.75, then the price cut will cause: a.)Sales quantity to decrease and revenues to also decrease b.)Sales quantity to decrease but revenues to increase c.)Sales quantity to increase but revenues to decrease d.)Sales quantity to increase and revenues to also increase

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dA 2 percent decrease in price causes a 2 percent decrease in quantit... View the full answer