If an Increase in the Price of a Product from $1

question 58

Multiple Choice

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is

• A)-1/3
• B)-2 1/3
• C)-1/4
• D)-3
• E)-2/3

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Definitions:

Cent

A monetary unit in various countries, equal to one hundredth of a base currency like the US dollar or the Euro.

Accurate

The quality of being correct or precise, without errors or mistakes.

Cent

A monetary unit in various countries, equal to one-hundredth of a base currency unit.

Decimal Equivalent

The representation of fractions as decimals by dividing the numerator by the denominator.