If demand price elasticity measures 2, this implies that consumers would
A) buy twice as much of the product if the price drops 10 percent.
B) require a 2 percent drop in price to increase their purchases by 1 percent.
C) buy 2 percent more of the product in response to a 1 percent drop in price.
D) require at least a $2 increase in price before showing any response to the price increase.
E) buy twice as much of the product if the price drops 1 percent.

Question

Quizplus · Accepted Answer

A price elasticity of 2 means that for every 1 percent decrease in price, the quantity demanded increases by 2 percent.

If Demand Price Elasticity Measures 2, This Implies That Consumers