If demand price elasticity measures 2, this implies that ...

[gbarreiro]

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.

[jesse.fleming]

Answer to Question 1

c

Answer to Question 2

d