If elasticity of demand is 0.1,a 1% increase in price will lower quantity demanded by
A)0.01%.
B)0.1%.
C)1.0%.
D)10%.
E)100%.

Name: If elasticity of demand is 0.1,a 1% increase in price will lower quantity demanded by A)0.01%. B)0.1%. C)1.0%. D)10%. E)100%.
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Question

Quizplus · Accepted Answer

Elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. If the elasticity of demand is 0.1, a 1% increase in price will lower quantity demanded by 0.1%.

If Elasticity of Demand Is 0