A value of the absolute price elasticity of demand equal to 0.25 indicates that
A. a 1% decrease in price leads to a 2.5% increase in quantity demanded.
B. a 10% decrease in price leads to a 25% increase in quantity demanded.
C. a 10% decrease in price leads to a 2.5% increase in quantity demanded.
D. a 0.25% decrease in price leads to a 1% increase in quantity.
Answer: C
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