Economics · May / June 2019 · Paper 12 · Question 7
2281Price elasticity of demand (PED)
A mobile (cell) phone operator increases the price of making calls on its network. After the price increase, the revenue of the mobile phone operator falls by 10%. What is the price elasticity of demand (PED) for the mobile operator’s service?
- Aelastic
- Binelastic
- Cperfectly elastic
- Dunit elastic
As printed in the paper
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Correct answer: A. elastic
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