Question

When the price of a good increased by 5 per cent, the quantity of it demanded decreased by 10

per cent. The price elasticity of demand is ___, and the rise of price will ________ total revenue.

(a) -2.0, increase

(b) -2.0, decrease

(c) -0.5, decrease

(d) -0.5, increase
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Answer 1

Answer:

option no. (d)

Explanation:

demand is -0.5 and the rise of price will increase