Change in quantity demanded-demand is inelastic

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Which are TRUE and which are FALSE ? PLEASE EXPLAIN the reasoning

A 10 percent reduction in price that leads to a 2 percent increase in total expenditures indicates a price elasticity of demand greater than 1.

A 10 percent reduction in price that leads to a 5 percent increase in the amount purchased indicates a price elasticy of more than 1

If the percentage change in price is less than the resultant percentage change in quantity demanded, demand is inelastic.

Reference no: EM131169450

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