-According to Table 2.1,which presents hypothetical data on price elasticity of demand,which of the following is true about lamb?
A) Each 2.7% change in the price of lamb causes a 1% change in the quantity demanded of lamb
B) The demand for lamb is inelastic
C) Each 1% change in the price of lamb causes a 2.7% change in the quantity demanded of lamb
D) Lamb is a normal good

Question

-According to Table 2.1,which presents hypothetical data on price elasticity of demand,which of the following is true about lamb?
A) Each 2.7% change in the price of lamb causes a 1% change in the quantity demanded of lamb 
B) The demand for lamb is inelastic 
C) Each 1% change in the price of lamb causes a 2.7% change in the quantity demanded of lamb 
D) Lamb is a normal good

Quizplus · Accepted Answer

The price elasticity of demand for lamb is 2.7, meaning that a 1% change in price results in a 2.7% change in quantity demanded, indicating elastic demand.