申論題

2. A recent study determined the following elasticities for Volkswagen Beetles(福斯金龜車)： Price elasticity of demand = 2 Income elasticity of demand - 1.5 The supply of Beetles is elastic. Based on this information, are the following statements true of false? Explain your reasoning,

a, A 10% increase in the price of a Beetle will rcduce the quantity demanded by 20%. (Wo)