In measuring elasticity,if e=2.0,then increasing the price of an object by ____ decreases demand by 20%.
A) 1%
B) 10%
C) 50%
D) 100%

Name: In measuring elasticity,if e=2.0,then increasing the price of an object by ____ decreases demand by 20%. A) 1% B) 10% C) 50% D) 100%
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Question

Quizplus · Accepted Answer

Elasticity (e) is the percentage change in quantity demanded divided by the percentage change in price. If e = 2.0, a 10% increase in price would lead to a 20% decrease in demand (2.0 = 20% / 10%).

In Measuring Elasticity,if E=2