alleryStart learning →With PES of 1.5, a price fall of 8% changes quantity supplied by what?
ARises 12%
BFalls 12%
CFalls 6.5%
DFalls 5.3%
Answer & Solution
Correct answer: B. Falls 12%
Quantity change = 1.5 x 8% = 12%, and it is a fall because price fell.
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