Q
The price elasticity of demand is defined as ?
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A
A. The percentage change in the quantity demanded divided by the percentage change in income.
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B
B. The percentage change in income divided by the percentage change in the quantity demanded
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C
C. The percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
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D
D. None of these answers
Correct Answer:
C. C. The percentage change in the quantity demanded of a good divided by the percentage change in the price of that good