If the Value of Price Elasticity of Demand Is 0

question 96

Multiple Choice

If the value of price elasticity of demand is 0.2,it implies that a 1 percent increase in price leads to a:

• A)2 percent decrease in quantity demanded.
• B)2 percent increase in quantity demanded.
• C)0.2 percent decrease in quantity demanded.
• D)0.2 percent increase in quantity demanded.

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Scatterplot

A graphical representation using dots to show the relationship between two quantitative variables.

Correlation

A gauge that determines the extent of simultaneous variations between two or more variables.