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6 May, 18:23

If the price elasticity of demand for a product is |-2|, this implies that Group of answer choices if the price increases by 2 percent, the quantity demanded will decrease by 1 percent. the change in quantity demanded divided by the change in price is equal to 2. if the price increases by $1, the quantity demanded will decrease by 2 units. if the price increases by 1 percent, the quantity demanded will decrease by 2 percent. if the price increases 1 unit, the quantity demanded will decrease by 2 units.

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  1. 6 May, 18:33
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    if the price increases by 1 percent, the quantity demanded will decrease by 2 percent.

    Explanation:

    As we know that

    Price elasticity of demand = (Percentage change in quantity demanded) : (percentage change in price)

    Since the price elasticity of demand is - 2 that means the price is increased and the quantity demanded is decreased

    The price would be increased by 1% and the quantity demanded would be decreased by 2% because of this, the price elasticity would be negative
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