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Price Elasticity of Demand on a Graph
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Problem 10
Price Elasticity of Demand on a Graph
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4. Elasticity / Price Elasticity of Demand on a Graph / Problem 6
Problem 6
Which of the following scenarios best illustrates unit elastic demand?
A
A 15% increase in the price of salt leads to no change in quantity demanded.
B
A 10% increase in the price of gasoline leads to a 5% decrease in quantity demanded.
C
A 5% decrease in the price of luxury cars leads to a 10% increase in quantity demanded.
D
A 20% decrease in the price of clothing leads to a 20% increase in quantity demanded.
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