Author Question: If price elasticity of demand is -0.5, a. a 1 decrease in quantity demanded leads to a 0.5 decrease ... (Read 69 times)

fbq8i · **on:** Jul 1, 2018

If price elasticity of demand is -0.5,
a. a 1 decrease in quantity demanded leads to a 0.5 decrease in price
b. a 1 decrease in price leads to a 0.5 increase in quantity demanded
c. a 50 decrease in price leads to a 1 increase in quantity demanded
d. a 50 decrease in price leads to a 100 increase in quantity demanded
e. demand is elastic

Question 2

If a 5 increase in price leads to an 8 decrease in quantity demanded, demand is
a. perfectly elastic
b. elastic
c. unit elastic
d. inelastic
e. perfectly inelastic