An elasticity of 1.5 means that a 1% change in price will lead to a _____% change in quantity demanded.
A)0.5
B)1.0
C)1.5
D)3.0
E)15

Name: An elasticity of 1.5 means that a 1% change in price will lead to a _____% change in quantity demanded. A)0.5 B)1.0 C)1.5 D)3.0 E)15
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Question

Quizplus · Accepted Answer

An elasticity of 1.5 means that a 1% change in price will lead to a 1.5% change in quantity demanded, reflecting a relatively elastic demand.

An Elasticity of 1