If a 10 percent rise in price leads to an 8 percent decrease in quantity demanded, the price...
Question:
If a 10 percent rise in price leads to an 8 percent decrease in quantity demanded, the price elasticity of demand is
A) 0.8.
B) 0.125.
C) 8.
D) 1.25.
E) 80.
Demand:
The term demand is a microeconomic topic and shows the changes in the quantity demanded of a product or service when its price changes in the market. Usually, a decline in price raises the quantity demanded and another way around.
Answer and Explanation: 1
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View this answer- The correct option is A. 0.8.
The price elasticity of demand can be estimated as:
{eq}The~price ~elasticity~of~demand =...
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Price Elasticity of Demand in Microeconomics
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Chapter 2 / Lesson 11
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In microeconomics, the principle of price elasticity of demand is important to understand. Learn the definition of price elasticity of demand, understand the formula and its categories, and see some calculation examples.
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