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The coefficient of demand of elasticity, E A. is the percentage change in the price of...

The coefficient of demand of elasticity, E A. is the percentage change in the price of the good divided by the percentage change in the quantity demanded B. measures the responsiveness of quantity demanded to changes in the price of the good C. describes how total cost changes when the price buys an additional plant in some other city

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Answer #1

Option B.

The formula of Ed = ((% change in Q)/(% change in P))*100

So, it tells about the nature of a good how it responds for a change in price, so that the best price can be determined. A elastic good will result in increase in total revenue if prices are reduced but an inelastic good would have much effect on changes in price and total revenue.

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