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If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

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Question:

If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

A.

Greater than one

B.

Equal to one

C.

Smaller than one

D.

Zero

Answer» c. Smaller than one

Note: The above multiple-choice question is for all general and Competitive Exams in India.