The price of apples falls by 5% and the quantity demanded increases by 10%. This means that the price elasticity of demand for apples is:
A) 2.0
B) 0.5
C) 1.0
D) 1.5

Name: The price of apples falls by 5% and the quantity demanded increases by 10%. This means that the price elasticity of demand for apples is: A) 2.0 B) 0.5 C) 1.0 D) 1.5
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Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is 10% / 5% = 2.0.

The Price of Apples Falls by 5% and the Quantity