Exhibit 5-1 Demand curve

If demand price elasticity is 2, consumers would:
A) buy twice as much of the product in response to a 10 percent decrease in prie.
B) require a 2 percent drop in price to increase their purchases by 1 percent.
C) buy 2 percent more of the product in response to a 1 percent decrease in price.
D) buy twice as much of the product in response to a 1 percent decrease in price.

Question

Exhibit 5-1 Demand curve

If demand price elasticity is 2, consumers would:
A) buy twice as much of the product in response to a 10 percent decrease in prie. 
B) require a 2 percent drop in price to increase their purchases by 1 percent. 
C) buy 2 percent more of the product in response to a 1 percent decrease in price. 
D) buy twice as much of the product in response to a 1 percent decrease in price.

Quizplus · Accepted Answer

The Answer of Exhibit 5-1 Demand curve

If demand price elasticity is 2, consumers would:
A) buy twice as much of the product in response to a 10 percent decrease in prie. 
B) require a 2 percent drop in price to increase their purchases by 1 percent. 
C) buy 2 percent more of the product in response to a 1 percent decrease in price. 
D) buy twice as much of the product in response to a 1 percent decrease in price.

Exhibit 5-1 Demand Curve