Suppose that quantity demand rises by 10 as a result of a 15

Suppose that quantity demand rises by 10% as a result of a 15% decrease in price. The price elasticity of demand for this good is a. inelastic and equal to 0.67. b. elastic and equal to 0.67. c. inelastic and equal to 1.50. d. elastic and equal to 1.50.

Solution

Quantity demand rises by 10% as a result of a 15% decrease in price.

a. inelastic and equal to 0.67.

*****