If a 6% decrease in price for a good results in a 2% increase in quantity demanded,the price elasticity of demand is
A)0.02.
B)0.33.
C)3.
D)4.

Name: If a 6% decrease in price for a good results in a 2% increase in quantity demanded,the price elasticity of demand is A)0.02. B)0.33. C)3. D)4.
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Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is 2% / -6% = -0.33. The absolute value is 0.33.

If a 6% Decrease in Price for a Good Results