If the price increases by 10 percent,and the quantity demanded falls by 5 percent,the absolute value of the price elasticity will be
A)0.5.
B)5.0.
C)50.
D)-5.0.

Name: If the price increases by 10 percent,and the quantity demanded falls by 5 percent,the absolute value of the price elasticity will be A)0.5. B)5.0. C)50. D)-5.0.
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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 gives |(-5%)/(10%)| = 0.5.

If the Price Increases by 10 Percent,and the Quantity Demanded