A price elasticity (E_D)of −1.50 indicates that for a ____ increase in price,quantity demanded will ____ by ____. A) one percent; increase; 1.50 units B) one unit; increase; 1.50 units C) one percent; decrease; 1.50 percent D) one unit; decrease; 1.50 percent E) ten percent; increase; fifteen percent

Question

Quizplus · Accepted Answer

A price elasticity of -1.50 indicates that a 1% increase in price will lead to a 1.50% decrease in quantity demanded. Therefore, option C is the best choice. Options A, B, D, and E all provide incorrect information.

A Price Elasticity (ED)of −1

A Price Elasticity (E_D)of −1