If an increase in the price of a product from 1 to 2 per unit ...

[Collmarie]

If an increase in the price of a product from 1 to 2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then according to the averaging equation, the value of price elasticity of demand in absolute terms is:
 a. 0.33.
  b. 2.33.
  c. 0.25.
  d. 3.
  e. 0.66.

Question 2

If an increase in the price of a product from 1 to 2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is:
 a. elastic.
  b. inelastic.
  c. of unitary elasticity.
  d. 0.
  e. inferior.

[carolinefletcherr]

Answer to Question 1

a

Answer to Question 2

b

[Collmarie]

TYSM

[xiazhe]

Excellent