Ed_t= - 5.This means that if A)P_tincreases by 5 percent,then Qd_t will decrease by 1 percent. B)Qd_tincreases by 5 percent,P_t will decrease by 1 percent. C)P_t increases by 1 percent,Qd_twill decrease by 5 percent. D)P_t decreases by $1,Qd_t will decrease by 5 units.

Question

Quizplus · Accepted Answer

The price elasticity of demand (Ed) is -5, meaning a 1% increase in price (P_t) leads to a 5% decrease in quantity demanded (Qd_t).

Edt = - 5.This Means That If

Ed_t= - 5.This Means That If