a. If price elasticity of demand is -1.6 and price increases by 2 percent, quantity demanded will  by . b. If price elasticity of demand is -0.8 and price decreases by 2 percent, quantity demanded will by .

If price elasticity of demand for a product is .5, this means a. a change in price changes demand by 50 percent. b. a 1 percent increase in quantity sold is associated with a .5 percent fall in price. c. a 1 percent increase in quantity sold is associated with a 2 percent fall in price. d. a .5 percent change in price will cause a .5 percent change in quantity sold,

Suppose the value of the price elasticity of demand is -3. What does this mean?Group of answer choicesA 1 per cent increase in the price of the good causes quantity demanded to increase by 3 per cent.A $1 increase in price causes quantity demanded to fall by 3 units.A 3 per cent increase in the price of the good causes quantity demanded to decrease by 1 per cent.A 1 per cent increase in the price of the good causes quantity demanded to decrease by 3 per cent.

If the price elasticity of demand for a good is 5, then a 10 percent increase in price results in aGroup of answer choices0.5 percent decrease in the quantity demanded.2 percent decrease in the quantity demanded.5 percent decrease in the quantity demanded.50 percent decrease in the quantity demanded.

Question 2If demand is elastic, then a 5% increase in price will cause:1 pointa decrease in quantity demanded of more than 5%.a decrease in quantity demanded of less than 5%.no change in quantity demanded.a decrease in quantity demanded of exactly 5%.

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded for that good.Question 1AnswerTrueFalse