If the price elasticity of demand for a given product is 0.7, this means that
A)the percentage change in quantity demanded is 0.7 times the percentage change in price.
B)if quantity demanded fell by 1 percent, price would fall by 7 percent.
C)if price was raised 7 percent, quantity demanded would fall by 0.7 percent.
D)if price was raised 7 percent, quantity demanded would rise 0.7 percent.
E)the percentage change in price is 0.7 times the percentage change in quantity demanded.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, with a coefficient of 0.7 indicating that a 1% increase in price leads to a 0.7% decrease in quantity demanded.

If the Price Elasticity of Demand for a Given Product