If the price elasticity of demand coefficient equals 2, then: a. A 7% decrease in the price

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If the price elasticity of demand coefficient equals 2, then:

a. A 7% decrease in the price will result in a 14% decrease in the quantity demanded.

b. A price decrease will increase total revenue.

c. The good has an inelastic demand.

d. There are likely few substitutes, a short time period under consideration, or this good accounts for a relatively small percentage of consumers’ budgets.

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Survey Of Economics

ISBN: 9780357720806

11th Edition

Authors: Irvin B. Tucker

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Question Posted: Dec 29, 2023 07:47 AM

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If the price elasticity of demand coefficient equals 2, then: a. A 7% decrease in the price

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