The Price Elasticity of Demand for a Textbook Is Estimated

question 130

Multiple Choice

The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded.In this case:

• A) a 10 percent increase in price will result in a 10 percent increase in the quantity demanded.
• B) a 10 percent increase in price will result in a 10 percent decrease in the quantity demanded.
• C) an increase in price will decrease the total revenue of sellers.
• D) a decrease in price will increase the total revenue of sellers.