Question the price elasticity of demand for widgets is 080, Ask an Expert

Economics

Question: The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets, a 16 percent increase in sales implies a:

A. 1 percent reduction in price.

B. 12 percent reduction in price.

C. 40 percent reduction in price.

D. 20 percent reduction in price.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92598326

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