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#59077 Bangla Language & Literature General Level 0

The price elasticity is-- 0.71 means?

  1. A an increase in price by 1% reduces the demand by 0.71%
  2. B an increase in price by Tk 0.71 reduces the demand by Tk 1
  3. C an increase in price by Tk 0.71% increases the demand by Tk 1%
  4. D an increase in price by Tk 1 increases the demand by Tk 0.71
Answer: B - an increase in price by Tk 0.71 reduces the demand by Tk 1

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