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Question
As a result of a 5% increase in price, the demand for commodity X increases by 12%. The price elasticity of demand will be ______.
Options
eD > 1
eD < 1
eD = 1
eD = ∞
Solution
As a result of a 5% increase in price, the demand for commodity X increases by 12%. The price elasticity of demand will be eD > 1.
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