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14 If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded is caused by a: 15 A 10% increase in the price of 40 inch LCD televisions which have a price elasticity of demand of 2.5 will cause a:

Question

14 If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded is caused by a:

 

15 A 10% increase in the price of 40 inch LCD televisions which have a price elasticity of demand of 2.5 will cause a:

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Step 1

Price elasticity of demand (PED or Ed) shows the responsiveness or elasticity about the quantity demanded which would result in the good or service to a change along with the price keeping all other factors constant such as the price changes.

Step 2

If the price elasticity of demand for gasoline is 1.8,  it would lead to a 15% decrease in quantity demanded is caused by a:

Price Elasticity of Demand= % change in Quantity/Q

                                                                --------------------...

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