In measuring elasticity,if e=0.1,then increasing the price of an item by 10% decreases demand by ____.
A) 1%
B) 10%
C) 50%
D) 100%

Name: In measuring elasticity,if e=0.1,then increasing the price of an item by 10% decreases demand by ____. A) 1% B) 10% C) 50% D) 100%
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Question

Quizplus · Accepted Answer

Elasticity (e) of 0.1 means that for every 1% increase in price, demand decreases by 0.1%. Therefore, a 10% increase in price would decrease demand by 1% (10% * 0.1 = 1%).

In Measuring Elasticity,if E=0