A price elasticity of 1.25 means that if price changes by 10%, then quantity will change by:
A) 1.25%.
B) .125%.
C) 12.5%.
D) -1.25%.

Name: A price elasticity of 1.25 means that if price changes by 10%, then quantity will change by: A) 1.25%. B) .125%. C) 12.5%. D) -1.25%.
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

Price elasticity of 1.25 means that for every 1% change in price, the quantity demanded will change by 1.25%. Therefore, a 10% change in price will result in a 12.5% change in quantity demanded.

A Price Elasticity of 1