With a price elasticity of demand of 0.45,when the price of soybeans falls by 10 percent,the quantity demanded of soybeans rises by approximately _____________ percent.
A)4.50
B)45.0
C)0.45
D)0.56

Question

Quizplus · Accepted Answer

The price elasticity of demand formula is: % change in quantity demanded = elasticity * % change in price. Thus, 0.45 * (-10%) = -4.5%, indicating a 4.5% increase in quantity demanded.

With a Price Elasticity of Demand of 0