If demand price elasticity measures 2, this implies that consumers would:
a. buy twice as much of the product if the price drops 10 percent.
b. require a 2 percent drop in price to increase their purchases by 1 percent.
c. buy 2 percent more of the product in response to a 1 percent drop in price.
d. require at least a 2 increase in price before showing any response to the price increase.
e. buy twice as much of the product if the price drops 1 percent.
Question 2
Demand price elasticity measures:
a. how much supply will change as price changes.
b. how consumers change their purchases in response to a change in income.
c. how consumers change their purchases in response to a change in the price of a substitute good.
d. how consumers change their purchases in response to a change in the price of a product.
e. the change in price brought about by a change in consumer demand.
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