Refer to Figure 24.3. Which of the following statements is true about the price elasticity of demand at price P2?
A. The price elasticity is inelastic.
B. The price elasticity is zero.
C. The price elasticity is unitary.
D. The price elasticity is elastic.
Answer: C
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a. increase market supply and increase market prices. b. increase market supply and decrease market prices. c. decrease market supply and increase market prices. d. decrease market supply and decrease market prices.
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