The Price Elasticity of Demand for a Given Good Is

question 150

Multiple Choice

The price elasticity of demand for a given good is 2.3. This implies that if price

• A)rises by 10 percent, quantity demanded falls 2.3 percent.
• B)rises by 2.3 percent, quantity demanded falls 2.3 percent.
• C)rises by 20 percent, quantity demanded falls 46 percent.
• D)falls by 10 percent, quantity demanded falls 2.3 percent.