A 10 percent increase in the price of tablets leads to a 1 percent decrease in the quantity demanded of tablets. The absolute price elasticity of demand for tablets is
A) 9.
B) 1.
C) 0.1.
D) 10.

Question

Quizplus · Accepted Answer

The absolute price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is |(-1%)/(10%)| = 0.1.

A 10 Percent Increase in the Price of Tablets Leads