If Demand Price Elasticity Measures 2, This Implies That Consumers

question 70

Multiple Choice

If demand price elasticity measures 2, this implies that consumers would:

• A) buy twice as much of the product if the price drops 10 per cent.
• B) require a 2 per cent drop in price to increase their purchases by 1 per cent.
• C) buy 2 per cent more of the product in response to a 1 per cent drop in price.
• D) require at least a $2 increase in price before showing any response to the price increase.