If the price elasticity of demand for good A is -1, then a 1% increase in
A) consumer income will result in a 1% decrease in the demand for good A.
B) consumer income will result in a 1% increase in the demand for good A.
C) the market price of good A will result in a 1% increase in the quantity demanded of good A .
D) the market price of good A will result in a 1% decrease in the quantity demanded of good A .

Question

Quizplus · Accepted Answer

Price elasticity of demand of -1 indicates that a 1% increase in price leads to a 1% decrease in quantity demanded.

If the Price Elasticity of Demand for Good a Is