If the price elasticity of demand for toothpaste is 0.20: A) The demand for toot
ID: 1180036 • Letter: I
Question
If the price elasticity of demand for toothpaste is 0.20:
A) The demand for toothpaste is linear.
B) A rise in the price of toothpaste will reduce total revenue.
C) A 10 percent fall in the price of toothpaste will increase the amount purchased by 20 percent.
D) A 10 percent rise in the price of toothpaste will decrease the amount purchased by 2 percent.
If the price elasticity of demand for toothpaste is 0.20:
A) The demand for toothpaste is linear.
B) A rise in the price of toothpaste will reduce total revenue.
C) A 10 percent fall in the price of toothpaste will increase the amount purchased by 20 percent.
D) A 10 percent rise in the price of toothpaste will decrease the amount purchased by 2 percent.
Explanation / Answer
D) A 10 percent rise in the price of toothpaste will decrease the amount purchased by 2 percent.