If the Price Elasticity of Demand for a Given Product

question 102

Multiple Choice

If the price elasticity of demand for a given product is 0.7, this means that

• A)the percentage change in quantity demanded is 0.7 times the percentage change in price.
• B)if quantity demanded fell by 1 percent, price would fall by 7 percent.
• C)if price was raised 7 percent, quantity demanded would fall by 0.7 percent.
• D)if price was raised 7 percent, quantity demanded would rise 0.7 percent.
• E)the percentage change in price is 0.7 times the percentage change in quantity demanded.

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