If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is:
A) 0.2.
B) 2.
C) 5.
D) 10.

Name: If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is: A) 0.2. B) 2. C) 5. D) 10.
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Question

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price, which is (2% / 10%) = 0.2.

If the Quantity of Bread Demanded Rises 2 Percent When