If a 10% increase in the price of pork reduces quantity demanded by 7%, the price elasticity of demand is:
A) -1.43.
B) -0.14.
C) -3.0.
D) -0.70.

Name: If a 10% increase in the price of pork reduces quantity demanded by 7%, the price elasticity of demand is: A) -1.43. B) -0.14. C) -3.0. D) -0.70.
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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 -7% / 10% = -0.70.

If a 10% Increase in the Price of Pork Reduces