The price elasticity of supply for a product will be 2 if a
A. 1% decrease in price causes a 0.2% decrease in quantity supplied.
B. 2% decrease in price causes a 2% decrease in quantity supplied.
C. 2% decrease in price causes a 1% decrease in quantity supplied.
D. 1% decrease in price causes a 2% decrease in quantity supplied.
Answer: D
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