Assume the demand for a good is price inelastic, i., e d 1 in absolute value . This means that if price decreases by 50 percent, quantity…
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Assume the demand for a good is price inelastic, i.e., e
d < 1 in absolute value .
This means that
if price decreases by 50 percent, quantity demandedwill:
A) increase by less than 50
percent.
B) decrease by more than 50
percent.
C) decrease by less than 50
percent.
D) increase by more than 50
percent.
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