If quantity demanded for rice falls by 2% when price increases 8%,we know that the absolute value of the own-price elasticity of rice is:
A)2)5.
B)0)25.
C)4)
D)0)40.

Name: If quantity demanded for rice falls by 2% when price increases 8%,we know that the absolute value of the own-price elasticity of rice is: A)2)5. B)0)25. C)4) D)0)40.
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Question

Quizplus · Accepted Answer

The own-price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is 2% / 8% = 0.25.

If Quantity Demanded for Rice Falls by 2% When Price