The price elasticity of demand for widgets is 0.50. Assuming no change in the demand curve for widgets, a 20 percent increase in price implies a: A. 50 percent reduction in Q. B. 10 percent reduction in Q. C. 40 percent reduction in Q. D. 20 percent reduction in Q

Essentials of Economics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 4PA: A price change causes the quantity demanded of a good to decrease by 30 percent, while the total...
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The price elasticity of demand for widgets is 0.50. Assuming no change in the

demand curve for widgets, a 20 percent increase in price implies a:

A. 50 percent reduction in Q.

B. 10 percent reduction in Q.

C. 40 percent reduction in Q.

D. 20 percent reduction in Q.

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