ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A businessman had intended to borrow $5000 at 8 % per year for house purchase. When the interest rate rose to 10% he decided to borrow only $4000.Within what range is his interest elasticity of demand for loans?
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0.0 to-0.3
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-0.4 to-0.7
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-0.8 to-1.2
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-1.3 to-1.7
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Explanation:
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