# 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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Chapter 2 / Lesson 11In 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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