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Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is
- A10%
- B30%
- C3
- D1
Correct answer: C
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Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is 3.
Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is 3.