The price elasticity of demand for eggs is 0.27.Thus,0.27 is the:
A) percentage change in the quantity demanded of eggs when the price of eggs increases by one percent.
B) size of the shift in the demand for eggs when the price of eggs changes by one percent.
C) size of the percentage change in the quantity supplied of eggs when the demand for eggs changes due to a price change.
D) percentage change in the price of eggs when the quantity demanded of eggs increases by one percent.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. A value of 0.27 means that for every 1% increase in the price of eggs, the quantity demanded will decrease by 0.27%. Therefore, option A is the correct answer.

The Price Elasticity of Demand for Eggs Is 0