If quantity demanded for rice decreases by 4% when the price of rice increases by 8%, we know that the price elasticity of rice is equal to:

a. -2.5
b. -0.5
c. -2.0
d. -0.4


Answer: -0.5

Economics

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Economics

The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:

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Economics