If the Price Elasticity of Demand for a Good Is

question 64

Multiple Choice

If the price elasticity of demand for a good is 0.8, then a

• A) 1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded.
• B) one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded.
• C) 1 percent rise in the price leads to an 80 percent decrease in the quantity demanded.
• D) 1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.