Exhibit 5-2 Price and quantity demanded data $$\begin{array} { | c | c | }
\hline \text { Price } & \text { Quantity Demanded } \
\hline 5 & 20 \
4 & 25 \
3 & 30 \
2 & 35 \
1 & 40 \
\hline
\end{array}$$
-The data in Exhibit 5-2 shows that price elasticity of demand is:
A) increasing as the price decreases.
B) decreasing as the price increases.
C) increasing as the quantity increases.
D) decreasing as the quantity decreases.
E) decreasing as the quantity increases.

Question

Exhibit 5-2 Price and quantity demanded data $$\begin{array} { | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } \
\hline 5 & 20 \
4 & 25 \
3 & 30 \
2 & 35 \
1 & 40 \
\hline
\end{array}$$
-The data in Exhibit 5-2 shows that price elasticity of demand is:
A) increasing as the price decreases.
B) decreasing as the price increases.
C) increasing as the quantity increases.
D) decreasing as the quantity decreases.
E) decreasing as the quantity increases.

Quizplus · Accepted Answer

As the quantity demanded increases, the price elasticity of demand decreases, indicating that demand becomes less responsive to price changes.

Exhibit 5-2 Price and Quantity Demanded Data -The Data in Exhibit 5-2 Shows That Price Elasticity of c