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Agriculture · Q490

Agricultural Economics

Graduate and Post Graduate · Agriculture · question 490

Q490

The cost of tractor decreases 10% and the demand of the tractor increases by 30%, the elasticity of demand will be

A.
Inelastic
B.
Constant elastic
C.
Highly elastic
Answer
D.
Perfectly inelastic

Answer: Option C

Solution

Answer: Option C
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