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The price elasticity is-- 0.71 means?




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The price elasticity is-- 0.71 means?

an increase in price by 1% reduces the demand by 0.71%
an increase in price by Tk 0.71 reduces the demand by Tk 1
an increase in price by Tk 0.71% increases the demand by Tk 1%
an increase in price by Tk 1 increases the demand by Tk 0.71