If the price elasticity of demand is 10, then for every 1% increase in price, there is a _____ in quantity demanded.
A) 10% decrease
B) 10% increase
C) 0.1% increase
D) 0.1% decrease

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. A price elasticity of 10 means that for every 1% increase in price, there is a 10% decrease in quantity demanded.

If the Price Elasticity of Demand Is 10, Then for Every