If elasticity of demand is 10,a 1% increase in price will lower quantity demanded by
A).1%.
B)1%.
C)10%.
D)100%.

Question

Quizplus · Accepted Answer

The elasticity of demand measures the responsiveness of the quantity demanded to a change in price. An elasticity of 10 means that a 1% increase in price will result in a 10% decrease in quantity demanded, and vice versa. Therefore, the correct answer is C, as a 1% increase in price will lower quantity demanded by 10%.

If Elasticity of Demand Is 10,a 1% Increase in Price