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Commerce · Q518

Economics

Graduate and Post Graduate · Commerce · question 518

Q518

Assume that the demand curve for a certain commodity is a downward-sloping straight line. In such case price elasticity of demand

A.
cannot be estimated
B.
decreases as price falls
Answer
C.
increases as price falls
D.
remains constant at every price

Answer: Option B

Solution

Answer: Option B
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