If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1%, quantity demanded decreases by:
A)½%.
B)1%.
C)2%.
D)4%.

Name: If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1%, quantity demanded decreases by: A)½%. B)1%. C)2%. D)4%.
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Question

Quizplus · Accepted Answer

The price elasticity of demand is 2, meaning that for every 1% increase in price, the quantity demanded decreases by 2%.

If the Absolute Value of the Price Elasticity of Demand