If Price Elasticity of Demand Is -0.5

question 123

Multiple Choice

If price elasticity of demand is -0.5,

• A)a 1% decrease in quantity demanded leads to a 0.5% decrease in price
• B)a 1% decrease in price leads to a 0.5% increase in quantity demanded
• C)a 50% decrease in price leads to a 1% increase in quantity demanded
• D)a 50% decrease in price leads to a 100% increase in quantity demanded
• E)demand is elastic

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A hand tool used for stripping the insulation from electric wires, essential in electrical wiring tasks.

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An entity engaged in the business of producing goods for sale, using labor, machinery, and raw materials.

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