If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:
a. increase the quantity demanded by about 2.5%.
b. increase the quantity demanded by about 25%.
c. decrease the quantity demanded by about 2.5%.
d. increase the quantity demanded by about 250%.

Question

If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:
a. increase the quantity demanded by about 2.5%.
b. increase the quantity demanded by about 25%.
c. decrease the quantity demanded by about 2.5%.
d. increase the quantity demanded by about 250%.

If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:

a. increase the quantity demanded by about 2.5%.

b. increase the quantity demanded by about 25%.

c. decrease the quantity demanded by about 2.5%.

d. increase the quantity demanded by about 250%.

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If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will: a. increase the quantity demanded by about 2.5%. b. increase the quantity demanded by about 25%. c. decrease the quantity demanded by about 2.5%. d. increase the quantity demanded by about 250%.